Shares of

Peet's Coffee and Tea

(PEET)

were hopping Friday, a day after the company reported a 21% growth in profit for the fourth quarter.

Peet's reported Thursday that its revenue grew 12% to $79.1 million in the fourth quarter, with net income of $4 million (29 cents per share), up from $3.3 million (23 cents per share) in the fourth quarter of 2007.

Analysts polled by Thomson Reuters had expected earnings per share of 28 cents on $80.6 million in revenue.

Peet's shares rose 8.8% to close at $22.52. Meanwhile, rival

Starbucks

(SBUX) - Get Report

, which recently revealed it would begin selling instant coffee, saw shares fall 0.3% to $10.15.

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Also in the coffee space,

Green Mountain Coffee Roasters

(GMCR)

closed up 1.7% to $41.40 and

McDonald's

(MCD) - Get Report

closed down 0.3% to $56.81.