The board of directors of Seattle-based coffeehouse giant Starbucks Corporation has authorised the repurchase of up to 10 million shares of the company’s common stock.
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Since it first instituted a share repurchase plan in September 2001, Starbucks has repurchased a total of 3.5 million shares of its common stock at a cost of US$51.6m under prior authorisation of up to US$60m. Under the expanded plan, shares will be repurchased in the open market at times and amounts considered appropriate by the company based on factors including price and market conditions.
Share repurchases under the expanded plan will be funded through cash and short term investments and are primarily intended to offset dilution from stock-based employee compensation plans. The company currently has approximately 387 million shares of common stock outstanding.
CFO Michael Casey said: “The board’s decision to expand the buy-back programme reflects Starbucks commitment to pursuing opportunities for creating shareholder value.
“This stock repurchase programme builds on our successful capital management strategy which supports funding the company’s significant and exciting future growth plans while continuing to improve return on shareholders’ equity.”
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By GlobalData
