Peet’s Coffee promises not to “overreact” to the rising cost of coffee

Peet’s Cofee (PEET) reported earnings results this evening. The company reaffirmed revenue targets for the year but lowered earnings guidance because of the rising cost of coffee (emphasis mine):

“Reaffirms full-year total net revenue growth in the 8% to 10% range. Lowers full-year diluted earnings per share guidance by $0.10 to the $1.43 to $1.50 range, driven entirely by the significant rise in coffee costs during the last three months

Interestingly enough, PEET implied that the run-up in coffee prices is overdone. This news should provide some reassurance and relief to coffee fans, especially since it seems PEET is resisting the urge to ramp up its own prices to keep up with the rising input costs (emphasis mine):

“While we expect to offset most of the year-over-year coffee cost increase we’re experiencing, we will continue to act in the long-term best interests of our business and not overreact to the recent run-up in world coffee prices.”

PEET has more than doubled in two years

PEET has more than doubled in two years

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