A cup of Coffee

The Diedrich Story is as rich as the flavor of their coffee. It all started in 1916, when Charlotte Diedrich inherited a coffee plantation in Costa Rica. Founded in 1972, Diedrich Coffee, Inc. specializes in sourcing, roasting and selling the world's highest quality coffees. Their primary brands include Diedrich Coffee, with coffeehouses primarily in California, Colorado and Texas; Gloria Jean's Coffees, established in 1979 and Coffee People, established in 1983 with coffeehouses in Oregon.

Headquarters in Irvine, California, Diedrich Coffee
trades on the NYSE under (DDRX). Their 52 week Low came on 12/1/04-@ $2.75 and their 52 week High came on 12/20/04 @$6.49. Closing on July 5th @ $4.78.

Today, Diedrich Coffee continues a rich tradition and pride for growing, selecting and roasting some of the finest coffees in the world, and serving them fresh at coffeehouses that reflect the warmth and down-to-earth feeling one gets from drinking a fine cup of coffee. The Company's 199 retail outlets, the majority of which are franchised, are located in 33 states and 13 other countries.

The Nation’s #2 coffeehouse company (behind Starbucks), Diedrich Coffee also sells its coffees through more than 460 wholesale accounts including office coffee service distributors, restaurants such as Ruby Tuesday and Ruth’s Chris Steak House and specialty retailers, via mail order and the Internet. Every Diedrich product is embraced by the Diedrich logo, which is centered by the family coat of arms.

To secure a stronger market in the US, the Company sold its international Gloria Jean's operations to its former Australian master franchisee on February 11, 2005. The Company continues to own and operate the Gloria Jean's domestic retail and wholesale business.

On June 20th Diedrich Coffee, Inc. announced operating results for the third quarter of fiscal 2005. For the twelve weeks ending March 9, 2005, the Company reported net income of $15,601,000, or $2.99 per basic share, compared to a loss of $69,000, or $0.01 net loss per basic share, for the third quarter of fiscal 2004. Results for the third quarter include an after tax gain of $2.98 per basic share from the sale of the Company's Gloria Jean's international operations.

For the thirty-six weeks ended March 9, 2005, the Company reported net income of $15,652,000, or $3.01 per basic share, compared to restated net income of $287,000, or $0.06 per basic share, for the first three quarters of fiscal year 2004.

Roger Laverty, President and Chief Executive of the Company said, "This is a fresh start for Diedrich Coffee. We believe that the sale of the Gloria Jean's international operations captured significant value for our shareholders. With over $17 million of cash, we now have resources to aggressively expand our brands in the United States, which we believe is the best market in the world for our specialty coffees. The profit contribution from the international operations was substantial, but we are excited with our prospects and we believe that successful domestic expansion can fill the void."

There are 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year. http://www.coffeeresearch.org/market/usa.htm.
It can be inferred, therefore, that coffee drinkers spend on average $164.71 per year on coffee. The National Coffee Association found that 54% of the adult population of the United States drinks coffee daily. They also reported that 18.12% of the coffee drinkers in the United States drink gourmet coffee beverages daily. In addition to the 54% who drink coffee everyday, 25% of Americans drink coffee occasionally.

This stock may take a while before it starts to “perk” but it appears consumers will always enjoy a good cup of coffee. Can Diedrich persuade the consumer to choose their cup?

A cup of Coffee

The Diedrich Story is as rich as the flavor of their coffee. It all started in 1916, when Charlotte Diedrich inherited a coffee plantation in Costa Rica. Founded in 1972, Diedrich Coffee, Inc. specializes in sourcing, roasting and selling the world's highest quality coffees. Their primary brands include Diedrich Coffee, with coffeehouses primarily in California, Colorado and Texas; Gloria Jean's Coffees, established in 1979 and Coffee People, established in 1983 with coffeehouses in Oregon.

Headquarters in Irvine, California, Diedrich Coffee
trades on the NYSE under (DDRX). Their 52 week Low came on 12/1/04-@ $2.75 and their 52 week High came on 12/20/04 @$6.49. Closing on July 5th @ $4.78.

Today, Diedrich Coffee continues a rich tradition and pride for growing, selecting and roasting some of the finest coffees in the world, and serving them fresh at coffeehouses that reflect the warmth and down-to-earth feeling one gets from drinking a fine cup of coffee. The Company's 199 retail outlets, the majority of which are franchised, are located in 33 states and 13 other countries.

The Nation’s #2 coffeehouse company (behind Starbucks), Diedrich Coffee also sells its coffees through more than 460 wholesale accounts including office coffee service distributors, restaurants such as Ruby Tuesday and Ruth’s Chris Steak House and specialty retailers, via mail order and the Internet. Every Diedrich product is embraced by the Diedrich logo, which is centered by the family coat of arms.

To secure a stronger market in the US, the Company sold its international Gloria Jean's operations to its former Australian master franchisee on February 11, 2005. The Company continues to own and operate the Gloria Jean's domestic retail and wholesale business.

On June 20th Diedrich Coffee, Inc. announced operating results for the third quarter of fiscal 2005. For the twelve weeks ending March 9, 2005, the Company reported net income of $15,601,000, or $2.99 per basic share, compared to a loss of $69,000, or $0.01 net loss per basic share, for the third quarter of fiscal 2004. Results for the third quarter include an after tax gain of $2.98 per basic share from the sale of the Company's Gloria Jean's international operations.

For the thirty-six weeks ended March 9, 2005, the Company reported net income of $15,652,000, or $3.01 per basic share, compared to restated net income of $287,000, or $0.06 per basic share, for the first three quarters of fiscal year 2004.

Roger Laverty, President and Chief Executive of the Company said, "This is a fresh start for Diedrich Coffee. We believe that the sale of the Gloria Jean's international operations captured significant value for our shareholders. With over $17 million of cash, we now have resources to aggressively expand our brands in the United States, which we believe is the best market in the world for our specialty coffees. The profit contribution from the international operations was substantial, but we are excited with our prospects and we believe that successful domestic expansion can fill the void."

There are 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year. http://www.coffeeresearch.org/market/usa.htm.
It can be inferred, therefore, that coffee drinkers spend on average $164.71 per year on coffee. The National Coffee Association found that 54% of the adult population of the United States drinks coffee daily. They also reported that 18.12% of the coffee drinkers in the United States drink gourmet coffee beverages daily. In addition to the 54% who drink coffee everyday, 25% of Americans drink coffee occasionally.

This stock may take a while before it starts to “perk” but it appears consumers will always enjoy a good cup of coffee. Can Diedrich persuade the consumer to choose their cup?

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