Peet's Coffee & Tea posted a third-quarter profit of $2.5 million, up 22 percent from the same quarter a year ago. Its revenues grew 8 percent to $73.9 million.

It's feeling so good about the last three months of 2009 that it raised its full-year profit expectations from an earlier range of 97 cents to a dollar a share, to $1.04 to $1.06. It will open 8 new stores this year and plans to open 5 to 7 new stores next year.

The public can hear a replay of a conference call with analysts earlier today.

Starbucks and Caribou Coffee -- the other publicly traded coffee shop chains -- report earnings next week.

From the Peet's call: Executives expect coffee costs to decline next year for the first time in years, but dairy costs will probably be higher than 2009.

CEO Pat O'Dea on why Peet's doesn't expand its coffee sales in grocery stores more quickly: "The 8,500 stores that we're in are in markets that represent two-thirds of all specialty coffee consumption, so we're fishing where the fish are.... It's much less efficient, early on in the specialty coffee growth curve, to be going to some of the center-of-the-country places where we could add a lot more doors, but they would be very inefficient doors."