Americans' craving for coffee is growing and that should be a boon for Starbucks, UBS senior analyst David Palmer told CNBC Thursday.
"One thing about coffee in this country is, behavior is shifting," he said. People are "moving toward the good stuff."
That means that if consumers are not using single-cup coffee machines to brew their joe to their liking at home, they are going to places that will do it for them. Coffee demand helped Dunkin' Brands launch its successful initial public offering Wednesday, while its premium coffee is contributing to sales at McDonald's. (Watch Palmer's comments about McDonald's beverage sales here.)
Starbucks reports its earnings after the bell Thursday.