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Green Mountain Coffee Roasters Inc. (GMCR), Campbell Soup Company (CPB): Soup’s Up

Competition
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) faces direct competition with Farmer Brothers Co. (NASDAQ:FARM). Farmer Brothers makes coffee products in addition to other food products, such as gravy, pancake, and biscuit mixes. The company is not profitable and had slower quarterly revenue growth of 4% last quarter.

Farmer Brothers Co. (NASDAQ:FARM) has a gross margin of 38%, which is slightly higher than Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) 37%, but its other ratios such as profit and operating margins are below zero. Overall, I think Green Mountain is a superior company.

Conclusion
The new partnership with Campbell Soup Company (NYSE:CPB) has shown Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s creativity and potential for innovation. When this is paired with the company’s new Bolt system and recent performance, I think the future looks bright for the coffee company. I think Green Mountain is a good investment.

The article Innovation Will Help This Coffee Company originally appeared on Fool.com.

Ben Popkin has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters. 

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