So much for margins right? If they announced they locked in a coffee contract to purchase through March 2014 when the coffee prices were at $150 I would say that would improve margins for sure. Meanwhile they have warned TWICE (last two earnings) about their low commercial sales. Does Starbucks and Dunkin Kcups have anything to do with it? YES. Do I like Starbucks coffee? No it tastes like crap and I wouldn't drink it if I was offered free coffee for life. The funny thing, is that apparently millions do like them and enough to impact CBOU's Kcup/commercial sales.
CBOU does NOT buy their coffee from the commodities futures market. What the price of coffee is trading at has NOTHING to do with what they pay. They prebuy their coffee from private coffee farmers and lock into a fixed contract price. You should read the statements from company. I also thought the same way you did until I read what was available from CBOU.
ok thanks but lower prices in the commodities market mean a better suppply available. i would think that it would also make cbou coffee less expensive wherever they get it . imo . seems like common sence. i dont know alot about much but i do have a bit of common sence.