Green Mountain Coffee Roasters Inc. (GMCR): Gone as High as It Can Go?

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Similarly, K-Cup sales at Starbucks Corporation (NASDAQ:SBUX) accounted for $232 million in revenues in fiscal 2012, or 15% of its consumer products segment. In comparison, K-Cups represented 5.9% of segment revenues in the second quarter, down from 7.8% in the first quarter, for an average of almost 7% over the first half of the year.

Reheating yesterday’s cup
Although Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has said it plans to build on its rather strong second-quarter results, it seems to me the market is moving away from the coffee maker’s base. Keurig machine sales were down 9% in the quarter, and despite adding more strategic alliances to those like Starbucks and Dunkin Brands Group Inc (NASDAQ:DNKN), the growth and proliferation of private-label coffee pod makers seems like it will dull the sharpness of its performance.

The article Green Mountain Coffee Roasters: Gone as High as It Can Go? originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters and Starbucks. The Motley Fool owns shares of Starbucks.

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