Orin Smith, president and CEO of Starbucks, talks about his company's growth, new products and moving those lines faster. Play video (Real or Windows Media)

NEW YORK (CNN/Money) - Hurt by escalating dairy prices, Starbucks Corp. has finally indicated that price hikes for its coffee shop selections may be in the offing sooner than expected.

The Seattle-based world's largest seller of gourmet coffee says there was a likelihood the company would raise prices in its North American market next year. Starbucks last raised prices four years ago.

In an interview with CNN/Money, Starbucks' chief financial officer Michael Casey declined to comment on the timing of the prices, their magnitude or whether it would affect all product categories.

In a note to clients Thursday, WR Hambrecht analyst Kristine Koerber said she anticipates Starbucks will raise prices on beverages in the first half of next year.

"We believe the price increases will be met with little resistance by the consumer because the underlying demand for the products has been so strong," she said.

Starbucks on Wednesday reported third-quarter earnings that surged 44 percent from a year ago on the back of strong sales in both its U.S. and international operations.

But marring the mostly positive picture, Starbucks said it continues to face higher-than-normal dairy costs and labor costs. Casey said dairy prices had cooled marginally from their highs but he anticipates pricing pressure to continue going forward.

For the fiscal third quarter, the Seattle-based company posted a profit of $98 million, or 24 cents a share, compared to last year's $68 million, or 17 cents a share. Analysts had forecast a profit of 22 cents a share, according to First Call.

Starbucks (SBUX: down $0.70 to $47.06, Research, Estimates) said consolidated sales rose 27 percent to $1.3 billion from $1 billion a year ago. U.S. comparable sales -- or sales at stores open at least a year -- grew 11 percent in the quarter.

Starbucks also upped its 2004 full-year earnings forecast by 4 cents a share to 94 or 95 cents a share. The company said it expects to post a profit of between $1.12 to $1.15 a share for 2005 and open 1,500 new stores globally next year.

Starbucks introduced new blended coffee drinks this summer, including chocolate, vanilla and strawberry-flavored Frappuccinos.

Analysts expect on average 92 cents a share for full-year 2004 and $1.08 a share for 2005.

"Our third-quarter financial results demonstrate the ongoing strength of our business," Starbucks President and CEO Orin Smith said in a statement. "Starbucks operations are functioning at a more sophisticated level than ever before. Our consistently strong performance positions us well to achieve our aggressive fiscal 2005 goals -- including an acceleration of store growth as we pursue the Company's expanding global opportunity."

The company said it is targeting 25 to 30 percent revenue growth in 2004 and about 20 percent growth in 2005, while sales at stores open at least a year are estimated to grow in the range of 3 to 7 percent next year.

However, based on current business performance, Starbucks said it is possible that comparable store sales growth may again exceed the Company's target range during in fiscal 2005.

Although its stock is up nearly double from its low last year, and despite growing Wall Street speculation about its possibility, company executives said there are no plans currently for a stock split.

Going forward, the world's largest specialty coffee seller said it expects to accelerate store growth primarily by expanding its global footprint.

The company currently operates more than 7,500 retail locations in North America, South America, Europe and the Middle East, including 2,300 locations outside the United States.

"The international business, instead of detracting from our business, is now additive to our business," said Casey.

While Starbucks' domestic growth has grown rapidly over the last four to five years, Casey said the company still considers itself to be in the "early stages" of growth overseas.

Casey identified China, Japan and Europe as presenting key growth and profit opportunities. "There are also a number of markets that we're not in such as Russia, Brazil and India. India has a huge evolving middle-class customer base. But that's not to say that we're entering that market immediately. It could still be a long time down the road," he said.

The company opened 114 new stores internationally over the last 12 months compared to 537 new stores over the same period in the U.S. market.

Its international units posted a profit of $13.7 million for the quarter, reversing a year-earlier loss of $1 million, while sales overseas grew 25 percent to $198 million from $158 million last year.

Some of the new initiatives that Starbucks has undertaken to boost sales and keep customers in stores longer include new flavors of iced-coffee and non-coffee-flavored Frappuccino blended drinks introduced last quarter. Starbucks recently added low-calorie and low-fat versions of the drinks called Frappuccino Light in a bid to appease followers of the latest dietary fad that's been sweeping the nation.

And in March, the company debuted its first in-store CD-burning service that offers customers the chance to burn full-length albums and personalized compilations from a digital library.

Casey said Starbucks music initiatives will create a new retail footprint, which will be a hybrid of a Starbucks coffee store and a music store, and where customers can use the stations in the store to listen to music as well as burn CDs. Although the concept is still in its test phase, Casey said the first rollout in a handful of stores could happen within the next year.