“I continue to be a buyer of this name,” he added.
Riddick said sales were stronger than he expected, and he called out Starbucks’ announcement that it shipped 100 million K-cups in the fiscal first quarter.
“They expect that the K-cups will become their second billion-dollar brand within that space,” he said.
Riddick maintained an “outperform” rating on the stock and a price target of $54 per share.
Starbucks briefly traded at a 52-week high of $48.49 per share, pulling back more than 2 percent after the closing bell to the $47 range.
Tim Seymour of EmergingMoney.com was optimistic of the company – not maybe not as a trade.
“This is a case where the stock just had a great run and is very fairly valued, and these are the stocks that are getting punished,” he said. “They did phenomenally well, but at 25 times earnings, there’s not a whole lot left for people. We need to see that growth in Starbucks that they actually are generating.”
Joe Terranova of Virtus Investment Partners noted that Federal Reserve Chairman Ben Bernanke warned of increasing food prices, which led him to liquidate a couple of stocks.
“SJM, Whole Foods — two names that I got out of today, and I don’t know necessarily if I would reestablish some of the longs that I put on in Starbucks,” he said. “I think coffee prices go higher.”
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Trader disclosure: On Jan. 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long XOM; Terranova is long TRLG; Terranova is long CNX; Terranova is long SBUX; Terranova is long SNDK; Terranova is long CSCO; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long AXP; Terranova is long F; Terranova is long JOY; Terranova is long MCD; Terranova is long OXY; Terranova is long MCD; Terranova is long OXY; Terranova is long IBM; Terranova is long SU; Terranova is long MA; Seymour is long F; Seymour is long AAPL; Seymour is long BAC; Seymour is long CIB; Najarian is long AKS; Najarian is long BAC; Najarian is long PNC; Najarian is long WFC; Najarian is long GDX; Najarian is long NFLX; Najarian is long MSFTl Najarian is long IBM; Finerman is long (JPM); Finerman is long (BAC); Finerman is long (PLCM); Finerman is long (IBM)
For Ron Insana
For Mike Khouw
No Disclosures, all holdings in separately managed accounts
For Karen Finerman
Finerman’s fund is long (AAPL)
Finerman’s fund is long (JPM)
Finerman’s fund is long (PLCM)
Finerman’s fund is short (SPY)
Finerman’s fund is short (MDY)
For Marc Riddick
For Carter Worth
For David Barger
For Richard Repetto
Sandler O'Neill expects to receive or intends to seek compensation from E*TRADE Financial Corporation for investment banking services in the next three months. As of the date of this report, Sandler O'Neill currently acts as a market maker in the securities of E*TRADE Financial Corporation. E*TRADE Financial Corporation is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report). An affiliate of Sandler O'Neill has received compensation from E*TRADE Financial Corporation for providing products or services other than investment banking services in the 12-month period ending as of the last calendar quarter.
CNBC.com with wires.