Starbucks Corporation (NASDAQ:SBUX) investors have something to cheer about today: the company announced first quarter, fiscal 2007 results that were exactly what analysts hoped they'd be. 26 cents a share, or $205 million, up 18% from the year-earlier quarter, on revenues of $2.4 billion, up 22% from the year prior.

In about 10 minutes, the analyst earnings call will begin. I'll be live blogging the call.

2:02 p.m. (All times Pacific.) The call has begun. Disclaimers... and the call is turned over to Jim Donald, CEO. As I mentioned, comparable store sales increased 6%; he breaks it down to 4% from number of transactions, 2% from value of transaction (connected to the increase in prices perhaps?).

2:02 p.m. The company opened 728 stores (awed voice) over two stores a day. The company is focused on balanced growth, and targeted investments. "Our food program this quarter was a significant contributor to our revenues... we have remained focused on expanding our lunch program..." 69% of company-operated U.S. retail stores now have lunches. Adds approximately $300,000 in average annual revenues to one store (big!). 1200 stores now offer warm breakfast items; aggressive plans to roll out warming platform over next couple of years. The warm sandwiches add (I think I heard this right) $135,000 in average annual revenue to one store. Both warm breakfast sandwiches and lunch programs are planned to be in all company-owned U.S. stores in a few years.

2:06 p.m. Raves over the Starbucks Card -- helps promote customer loyalty, it's huge, a great gift. I must admit I just bought my sister-in-law a Starbucks Card for her birthday...2:08 p.m. CPG (Consumer Products Group): "A channel just as vibrant and robust as our company-owned retail stores." He's really promoting this as a huge area for Starbucks, allowing customers to take its products with them everywhere! Even when they're not near a Starbucks store! (Which, for me, is virtually NEVER, but I'm in a key coffee-loving market.) This includes things like roasted coffee beans, bottled Frappuccino and canned DoubleShot but it's interesting to note that the earnings release says there was "lower sales volume" in this area and also the Starbucks Ice Cream... hmmm... I wonder if the analysts will pick up on this in questions.

2:12 p.m. Talking about removing trans fats -- they'll be removed in China, too. Interesting. Up for spring: Latin American coffees, "exciting pastries," and some sort of flavored drinks. Dulce du leche anyone? He didn't say, that'll be fun to noodle over.

2:14 p.m. Guess we're in "targeted investment" portion of the call, talking about giving raises to management in 2nd quarter, spending more for coffee to promote third-world farmers, and how much they all love working together.

2:15 p.m. He's handed the call off, I didn't hear to who -- maybe Martin Coles, as he's talking about international markets? -- hopefully I'll figure it out. It could be Michael Casey, the CFO, but he begins waxing rhapsodic about books, including Mitch Albom's novel and the one I think of as "the depressing one": "powerful story of hope and redemption is a former child soldier's rare first-hand account of fighting as a boy in the war-torn country of ." A portion of the proceeds will go to UNICEF.

2:18 p.m. China is a "top priority for us." He just got back from Shanghai. He gave keynotes at three Chinese universities, trying to recruit local business minds to help manage the stores there. I suppose Starbucks management is a great job in China... They're looking forward to Beijing Olympics, and excited about entering Russia. Moscow will come in this calendar year, and they remain optimistic they'll be able to open doors in India's first store in this calendar year, too.

2:22 p.m. Yay for the Starbucks Card! It'll be launching throughout the world. Hong Kong cards are planned soon, and before you know it you'll be able to buy a card in Akron and use it in Beijing... I guess. (He doesn't say so explicitly but makes that allusion.)

2:24 p.m. "I'm confident that we'll be able to meet our aggressive goals this year and in years to come." Aha! It was Howard Schultz, founder and chairman.

2:25 p.m. Call's turned over to Michael Casey, CFO, who "has a bad cold." Fun with details... let's see. Lower G&A costs, higher occupancy costs, especially rent. "Training and leadership development continue to be a priority for us..." they like to spend money on wage increases for the company's "partners" (known the business world over as "employees") and on charitable contributions, which were up this quarter.

2:29 p.m. I like to check the after-hours stock price as the call progresses to see if anyone's buying or selling on the hype. They seem to be selling a touch, but still happy... the stock is down a bit from its just-post-release high, but still up from the close -- $35.65 when I looked.

2:32 p.m. I love finance! And the life of a CFO always seemed like something to strive for. But why is it that I'm always so mind-numbingly bored when the CFO starts talking? **YAWN***

2:36 p.m. I'm trying to find something interesting in this. OK: he's admitting the lower sales in the ready-to-drink beverages and ice cream. But there are higher marketing costs, in support of the launch of these bottled-and-canned beverages in Asia Pacific.

2:37 p.m. Here's something I know about: revolving loans (hello, loan syndications!). Starbucks has reduced the outstanding balance to only $365 million. The company paid down $335 million this year. (And long-term debt is so-close-to-nil.) Gad. That's beautiful. The company's amazingly debt-free (comparatively, people!) balance sheet is one of the biggest reasons I love this stock.

2:42 p.m. Targeting net revenue growth of 20%; full-year earnings growth of 37%, down a tick from earlier expectations of 38% (because of taxes, he says); and same-store growth of "three to seven percent." Ummm... a little wide berth there? They'll open approx. 1,000 new company-owned stores this year in the U.S., 300 international company-owned stores.

2:43 p.m. Larry Miller has the first question (no institution). Are there inefficiencies as you're rolling out food? What's with the higher cost-of-sales? Will this affect earnings thanks to the wider the lunch rollout? Answer: mostly, it's because of higher occupancy costs and the change in the mix -- lower gross margin for lunch than for "hand-crafted beverages." Hee.

2:46 p.m. Citigroup wants to know if wage increases are due to competitive pressure -- they say no! They're being proactive. The "partners" voiced that they wanted more money. I don't know why this makes me laugh out loud.

John Glass from CIBC. What are the relative size of the management wage increase this year as compared to last (for employees)? Answer: the wage increase for management is less in "sheer numbers" (i.e. dollars to bottom line) than for employees, b/c there are so few of them. But this hardly answers the question -- percentages? They don't say.

Lots of "proactive" and "staying ahead of the curve" talk here...

2:48 p.m. Jeffrey Bernstein, Lehman Brothers. What's with the savings in G&A expenses... what is the outlook for this line going forward? Is this sustainable or an anomaly? Answer: as a percentage of sales, you can expect this line to remain "well-controlled" throughout the year... "as a percentage of sales." (Repeated, for emphasis.)

2:50 p.m. Oh God, I missed who did this question, it's great. Howard. It's both brown-nosing and dangerous. He wants to know, since you're the only one who will ever be a national coffee chain... you so rock... why do you continue to push the envelope with aggressive growth? So many other companies have had a problem with managing aggressive growth. Why do you think you can do it when others can't, and why are you doing it even though you so rock the industry?

Answer: Umm, everyone doubted us when we were gunning for 1,000 stores, and now we're at 13,000 gunning for 40,000! People love us, people want us. The opportunity is huge. So we keep growing because everyone's asking for more Starbucks. Essentially, he's saying that the company is managing growth fine, and it's Starbucks' responsibility to continue growing. Oh, someone's drinking Frappuccino-flavored Kool-Aid.

2:55 p.m. Matt from Thomas Wiesel Partners. How do you measure the price/value equation? (I think he's asking if Starbucks can rise prices.) The answer: the company is "mindful" of "taking price," and have only taken two price increases since Jim (I think) has been with Starbucks. They're not going to do it much. Someone follows up... says that he admires the "pricing power" the company has, but wants to use it judiciously.

And we're doing so damned good! Why you trippin'? Seems to be the answer.

2:57 p.m. Last question from Ashley Woodrow. Why is the occupancy expense higher? The answer is, basically, since so many stores are currently in the opening process, they're paying lots for stores that haven't opened, hence haven't started contributing revenue (and offsetting those costs) as a percentage. There was also an accounting change -- they're requiring to expense rent from the date of possession. This occurred about a year ago. It's also having to do with "strategic acquisitions" (like the one of Coffee People -- my neighborhood Coffee People still hasn't been converted, although I guess Starbucks is expensing that rent. Huh.).

3:00 p.m. Boy that's quite the on-time performance! The call is over. "You may now disconnect." Color to come...