Diedrich Coffee swings to profit in Q3

Irvine, Calif. Diedrich Coffee announced on Tuesday its operating results for its third quarter ended March 4. For the quarter, the company reported net income of $1.36 million, compared with a net loss of $2.15 million for the year-ago period.

Total revenue increased to $19.5 million for the third quarter of fiscal year 2009, vs. $11.3 million last year.

On March 27, Diedrich Coffee announced that it had signed a definitive agreement with Praise International North America, an affiliate of Gloria Jean's Coffees International, for the sale of its Gloria Jean's Coffees domestic franchise operations. Gloria Jean's Coffees International holds the rights to the Gloria Jean's Coffees brand for all countries in the world except the United States.

The sale of the Gloria Jean's Coffees domestic franchise operations to Praise International North America includes a total of 102 franchise and company-operated locations in 24 states. The purchase price is approximately $3.1 million.