Starbucks ( SBUX) Company Profile: Seattle-based Starbucks purchases and roasts whole bean coffees and sells them, along with fresh, brewed coffees, Italian-style espresso beverages, cold blended beverages, a selection of teas and coffee-related accessories. Starbucks reaffirmed part of its 2011 guidance "despite dramatically higher coffee costs," but revised its earnings-per-share outlook to a range of $1.44 to $1.47, lower than the $1.49 per share analysts had expected.
The coffee shop chain cited higher-than-expected coffee costs, which it said will negatively affect its 2011 EPS by around 20 cents, for the revised earnings guidance, but said it would not raise prices to cover those extra costs. In September Starbucks had said it may raise prices on its packaged coffee as well as large-sized, labor-intensive drinks to help offset rising coffee and commodity costs. In December CEO Howard Schultz called the 50% spike in coffee futures "tragic," blaming financial speculators for the run-up in prices.