How Green Mountain Coffee Makes Money
Today, analysts Brendan Byrnes and Austin Smith discuss how Green Mountain Coffee Roasters makes its money. The company uses a razor-and-blades model, where it sells a machine essentially at cost but generates profit on high-margin parts. For GMCR, its low-cost Keurig coffee brewers guarantee repeat business for its high-margin, refillable K-Cup pods.
You can find more in-depth analysis on Green Mountain Coffee Roasters (NAS: GMCR) in our premium report. It's a must-read that covers all of the opportunities, business drivers, risks, and more about this fallen angel. Most importantly, it shows whether the company is still a buy at these cheap prices. Click here to read more now.
The article How Green Mountain Coffee Makes Money originally appeared on Fool.com.
Austin Smith has no positions in the stocks mentioned above. Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool has the following options: long DEC 2012 $16.00 puts on Green Mountain Coffee Roasters and short DEC 2012 $21.00 calls on Green Mountain Coffee Roasters. Motley Fool newsletter services recommend Green Mountain Coffee Roasters and The Procter & Gamble Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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