Did you know they've raised the prices of their coffee recently?
[DIV id=datebar]LOS ANGELES (Reuters) - U.S. consumers aren't going to balk at paying an extra nickel for their daily cup of Starbucks (Nasdaq:SBUX - news) coffee despite high gas prices and other pressures on their wallets, analysts said on Friday.
Starbucks' announcement on Thursday that it will raise prices on drinks such as lattes and brewed coffee by 5 cents a cup came as a pleasant surprise to many on Wall Street, who said the move is sure to boost sales and earnings but unlikely to spook customers who see a trip to the chain as an affordable luxury.
"The price increase will see little if any resistance by the consumer," said JMP Securities analyst Kristine Koerber, who said traffic at the chain held steady two years ago after a more dramatic price increase. "It's gotten to be part of our daily routine."
[FONT size=1]Read more: [/FONT][A href="vny!://news.yahoo.com/s/nm/20060922/bs_nm/leisure_starbucks_prices_dc_2"][FONT size=1]vny!://news.yahoo.com/s/nm/20060922/bs_nm/leisure_starbucks_prices_dc_2[/FONT][/A][/DIV]