Farmer Bros. (FARM) Stock Analysis & Winston Score

Farmer Bros. Co. is a coffee, tea, and spice company that sells its products to restaurants, hotels, hospitals, and other foodservice businesses across the United States. The company roasts and packages coffee under several brands and also supplies equipment like commercial coffee brewers to its customers. It has been in business for over 100 years, making it one of the older foodservice beverage distributors in the country. The company makes money by selling coffee and related products directly to foodservice operators, often bundling equipment and service contracts alongside the beverages. It operates entirely in the United States and generates roughly a few hundred million dollars in annual revenue. Farmer Bros. faces a tough competitive position — its operating and returns on capital are currently negative, meaning it spends more than it earns — and the key challenge ahead is cutting costs and retaining customers in a fragmented market where larger distributors and direct-from-roaster brands compete aggressively for the same accounts.