Peet's Annual Report Review

Peet's 10K provides more information about the company. Here is my summary of the highlights:

First, Peet's currently has 166 stores. That means they plan on opening another 24 stores before the end of the year. The cost of opening those stores will drag down Peet's earnings in the near future. Once more time passes, Peet's will recoup its costs from a consistent stream of revenue from those new stores.

Peet's mentions a well-known fact--that arabica beans are known as the best quality beans. I point this out only because we can finally see the word arab receiving some positive connotation in America.

Peet's has only 687 full time employees. However, with 21 hours per week + 500 hours of work, employees can receive full benefits.

Peet's says that "green beans" are not highly perishable and are the largest cost of sales and raw materials. Green beans appear to be coffee beans that haven't been roasted yet.

I can't say I'm as bullish on Peet's stock as I am on the coffee, but I will keep an eye on the stock--especially if Peet's P/E becomes more reasonable.

A detailed review of the 2008 shareholder meeting is here:

http://willworkforjustice.blogspot.com/2008/05/peets-coffee-and-tea-shareholder.html