What Does Farmer Brothers (FARM) Do? - Stock Outlook, Earnings, Market Cap, Related Stocks, and Headquarters Summary
A small-scale foodservice company with over 100 years of history, recognized as a leading U.S. B2B distributor of coffee, tea, and food ingredients, which has launched a strategic alternatives review.
Subscribe🏢 What kind of company is Farmer Brothers?
Farmer Bros. is a premier U.S. business-to-business (B2B) coffee company founded in California in 1912, currently headquartered in Fort Worth, Texas. Leveraging its nationwide coffee roasting and blending facilities along with its logistics and sales network, the company supplies coffee, tea, syrups, sauces, and related beverage products to B2B customers including small and mid-sized restaurants, large restaurant chains, hotels, casinos, hospitals, convenience stores, and foodservice distributors. It also provides a total beverage solution that covers coffee machine installation, repair, and consumable supplies. Its key brands include Farmer Brothers, Boyd's Coffee, SUM ONE, West Coast Coffee, Cain's, and China Mist. In 2025, the company launched a review of strategic alternatives aimed at enhancing shareholder value.
💰 How does it make money?
| Business Segment | Description | Revenue Share |
|---|---|---|
| Coffee Products | Revenue from whole bean and ground coffee, as well as proprietary and private label coffee products | Approximately 65% |
| Tea and Other Beverages | Revenue from tea (including China Mist), syrups, sauces, and beverage ingredients | Approximately 15% |
| Food and Culinary Products | Foodservice products including spices, soup bases, and culinary ingredients | Approximately 15% |
| Equipment and Services | Revenue from coffee machine installation, maintenance, consumables, and technical services | Approximately 5% |
Farmer Brothers generates revenue at the $337.7M level, with a revenue trend of -2.1%. Following the divestiture of its Direct Shipment segment in 2023, the company has shifted its structure to focus on its core foodservice and institutional customer business, and the combination of coffee bean price fluctuations and the foodservice industry demand cycle has a complex impact on both revenue and margins.
📐 Market Cap and Company Size
Market capitalization stands at $28.1M, which is equivalent to About 0% of Samsung Electronics' market cap. The company has 865 people employees.
Farmer Brothers is a small-cap foodservice company with a market capitalization of $28.1M, and its workforce of 865 people operates a nationwide network of roasting facilities, logistics, sales, and service operations. Over 100 years of operating history and its B2B coffee service track record are its core assets.
📈 Farmer Brothers Outlook and Stock Performance
1-Year Price Performance
Analyst Consensus
52-Week Price RangeFarmer Brothers is a total coffee and beverage solutions provider serving U.S. foodservice, hotel, and institutional customers, and its structure remains exposed to both rising and falling coffee bean price cycles. Following the divestiture of its Direct Shipment segment in 2023, the company has pursued a strategy focused on its core foodservice business, and the 2025 announcement of a strategic alternatives review adds an event-driven character that encompasses various scenarios including a sale, restructuring, or strategic partnership. Gross margin (40.7%) and operating margin (-1.1%) move sensitively with coffee bean prices and pricing pass-through capability, and the pace of normalization in earnings per share ($-0.86) and return on equity (-48.3%) is key to a valuation re-rating.
⚔️ Core Competitive Strengths and Risks
Farmer Brothers is a traditional B2B coffee company with over 100 years of history and a nationwide foodservice network, but it also carries uncertainties tied to coffee bean price volatility, the foodservice demand cycle, and the ongoing strategic alternatives review.
💪 Core Competitive Strengths
⚠️ Core Risks
🔄 Competitors and Related Stocks (Beneficiaries)
Farmer Brothers competes in the U.S. B2B coffee market with Keurig Dr Pepper (KDP), Nestlé (NSRGY), Massimo Zanetti, and Royal Cup, while in the foodservice arena its offerings also overlap with the coffee lineups of food ingredient distributors such as US Foods (USFD) and Sysco (SYY). Related stocks include leading coffee brand names Starbucks (SBUX) and Keurig Dr Pepper (KDP).
Competitors| Ticker | Company | Price | Change | Market Cap | P/E | PBR | ROE | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| KDP | Keurig Dr Pepper Inc | $32.08 | -1.4% | $43.7B | 32.5 | 1.7 | 5.71% | 2.93% |
 USFD | US Foods Holding Corp | $97.45 | -5.5% | $21.1B | 30.0 | 4.9 | 16.35% | - |
Related stocks (beneficiaries)| Ticker | Company | Price | Change | Market Cap | P/E | PBR | ROE | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| SBUX | Starbucks Corp | $100.04 | -1.9% | $114.0B | 57.7 | - | - | 2.52% |
| SYY | Sysco Corp | $81.57 | +2.2% | $39.1B | 22.3 | 14.6 | 78.11% | 2.71% |
✅ Investor Checklist
If you are considering an investment in Farmer Brothers, review the following checkpoints.
| Checkpoint | What to Verify | Current Status |
|---|---|---|
| Coffee Bean Price Impact | Margin outlook based on international coffee bean price movements and pricing pass-through | Needs Monitoring |
| Foodservice and Hotel Demand | Order volumes and operating environment of key B2B customer groups | Needs Monitoring |
| Strategic Alternatives | Whether announcements on a sale, partnership, or other strategic review are forthcoming | In Progress |
| Operating Margin | Speed of profitability recovery following the core business focus | Needs Monitoring |
Companies undergoing a strategic alternatives review tend to exhibit significant event-driven stock price volatility, so it is important to monitor both key disclosures and fundamental trends.
In conclusion, Farmer Brothers is a U.S. B2B coffee distribution company with 100 years of history, and as a small-cap, event-driven name, its corporate structure and valuation could shift materially depending on the outcome of its core business focus and strategic alternatives review.
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