Part of the proceeds, about $38 million, will go toward store growth. Caribou executives are planning 105 to 115 new coffeehouses next year, on top of the 48 to 58 they plan to open this year. Officials also plan to make payments on the company's revolving credit facility.
One of the risk factors Caribou lists for investors is the possibility of income losses. For the year ended Jan. 2, Caribou lost $2.1 million, and the company has lost $3.1 million for the 26 weeks ended July 3. The retailer's deficit is at $23.1 million.
Another risk for investors in competition. Caribou is far behind Starbucks, the leader in the sector, with about 9,500 locations worldwide. "Competition in the gourmet coffee market is becoming increasingly intense as relatively low barriers to entry encourage new competitors to enter the market," says Caribou's prospectus.
Over the 26 weeks ended July 3, Caribou posted year-over-year same-stores sales of 9%. Net sales during the period increased 28%, to $93.3 million.
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