Starbucks Corporation (NASDAQ:SBUX) will host its 2007 annual shareholders meeting on Wednesday, March 21, 2007 in Seattle. What normally is a quiet, simple affair, is drawing extensive coverage as both investors and analysts are looking for comfort and solid guidance. The stock has been under pressure for the last 4-6 months as investors are questioning sustainability of earnings growth.

The $23 billion market cap company is probably experiencing what is normal and expected. The growth rate for Starbucks will settle into a predictable 20-22% for the next three to four years. This is versus the 30%+ growth the company enjoyed in its early development. So what is everyone nervous about?

Starbucks is so far ahead of its nearest pure competitor. Caribou Coffee Company, Inc. (NASDAQ:CBOU), a Minneapolis, Minnesota-based competitor has about 500 stores spread out over 16 states. Caribou has yet to turn a profit and has been struggling since its early 2006 IPO. Dunkin Donuts and McDonald's Corp. (NYSE:MCD) are certainly formidable competitors, but the customer base and the destination crowd are not going to forgo Starbucks for a McDonald's coffee. McDonald's customers rarely go to McDonald's for just a cup of coffee. It's an ancillary sale, always has and always will be. Sure the coffee offerings can be improved and varied, but c'mon let's get real.