Who’s Playing the Caribou Coffee (CBOU) Buyout?

Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) recently approved a $4 special dividend that puts the one-time yield on the stock at 3%. Recent 3Q results came in at $0.20 versus $0.17 in 3Q 2011. Einstein has been exploring the combination or sale of its company, or the recapitalization of its stock, and would be a likelier candidate for Benckiser. Billionaire David Einhorn of Greenlight Capital is Einstein’s largest fund owner by far with over 10 million shares (check out David Einhorn’s newest stocks).

After purchasing the coffee roaster Peet’s in 2011, Benckiser has now turned its attention to the premium coffee market. If Benckiser wants to add to its coffee-themed buyouts, it could take a look at Einstein, which trades with a market value of only $275 million. Einstein would add a breakfast and food segment to Benckiser’s robust coffee portfolio. Caribou Coffee has over 600 outlet stores, which will add to Peet’s Coffee and Tea outlets, putting the total outlet stores to over 800; Starbucks boasts over 1,100 outlets. We also see Einstein as one of the better value plays when compared to Caribou or Krispy Kreme; Einstein trades at only 0.6x earnings, where Caribou is at 1.1x and Krispy Kreme is at 1.4x. To continue reading about all things coffee and breakfast, check out some previous coverage:

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