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Coffee Drinkers Pull Together

Starbucks and Peet's post solid growth after the close.
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The consumer continued to drink coffee at a steady clip in recent weeks, two java industry leaders confirmed Wednesday afternoon.

Seattle-based roasting stalwart


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said total revenue for the four weeks ended July 31 rose 21% to $495 million from $410 million for the same period in fiscal 2004.

Same-store sales at company-operated stores rose 7% for the month.

"On the heels of Starbucks terrific third quarter performance, we have demonstrated continued momentum with our strong July revenues," Jim Donald, president and chief executive, said in a press release. "As we have consistently seen, Starbucks core handcrafted beverages again drove our comparable store sales growth. The enthusiastic response to our new Tazo Green Tea beverages was also a key contributor."

Down the Pacific Coast in Emeryville, Calif., the much smaller

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Peet's Coffee & Tea


said revenue rose 24.4% to $41.7 million from $33.6 million for the second quarter ended July 3.

The company posted earnings of 18 cents a share compared with 13 cents a share in the year-ago quarter. Peet's also projected full-year revenue of about $173 million and a profit of 74 cents.

"We are pleased with the progress we are making in executing our growth strategy, as indicated by our results this quarter and our first-half sales growth of 23.5 percent," said Patrick O'Dea, president and CEO of Peet's. "While we expect our growth rate in the third and fourth quarters to come down a bit due to the timing of new store openings this year versus last, we remain on target to deliver our original guidance for the year."

For the third quarter, the company is forecasting sales growth of around 20% and earnings of 14 cents to 15 cents a share.

According to Thomson First Call, analysts expected second-quarter earnings of 16 cents a share from Peet's. The consensus profit estimates are 15 cents for the third quarter and 74 cents for the year.

Starbucks added 23 cents to $52.13 after the close. Peet's slipped 1 cent to $33.82.