Dunkin Brands Group Inc (NASDAQ:DNKN)’ Donuts saw mid-single-digit growth in K-cup sales in its second quarter. While K-cup comps were slightly lower, it witnessed good demand in newer markets. The chain introduced Iced Coffee K-Cups in July and remains bullish about possibilities going forward.
Dunkin Brands Group Inc (NASDAQ:DNKN)’ Donuts saw 4% comparative same-store sales growth in the U.S. As it adds more stores in country, modernizes its existing outlets, and expands its menu, it should see more upside. There is a lot of excitement over the chain’s plans to add 1,000 stores in California, which till now is devoid of its presence.
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is looking to foray into the $10 billion away from home hot beverages market. The company is currently targeting offices where it has found out that 65% of coffee is still brewed in pots. It is planning to capture some parts of this segment through its Keurig single cup machines and is also planning to launch a new machine called Keurig BOLT for bulk brewing.
Along with offices, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) expects the new BOLT to find favor with convenience stores, food service outlets, and in hospitality channels.
On the other hand, the company is also eyeing single serve opportunities in juices, carbonated beverages, sports drinks, and enhanced waters. Whether Sodastream International Ltd (NASDAQ:SODA) should feel threatened is something that we will better understand after its Investors Day next month.
There is enough to be optimistic about the prospects of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). It stands to gain from its growing installed base of Keurig machines while the solid partnerships continue to boost sales of K-cups. The new opportunities can be an added positive.
Eshna De has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters and Starbucks. The Motley Fool owns shares of Starbucks.
The article Grab the Green Mountain Opportunity originally appeared on Fool.com and is written by Eshna De
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