Starbucks Expands Buyback Plans by 25M Shares
SEATTLE (AP) — Seattle based Starbucks says it may repurchase up to 25 million additional shares of its common stock.
The Seattle-based coffee company says that its board approved the plans in addition to the 12.1 million shares still available under a prior authorization. The company has an estimated 749.3 million shares outstanding.
Starbucks says the plan reflects its strong cash flow and commitment to return value to shareholders. The move comes a day after Starbucks announced the acquisition of Teavana, which sells loose leaf teas, for $620 million.
Companies reward investors when the repurchase shares by increasing the value of remaining shares. The company’s per-share earnings also get a boost as results are divided among fewer shares.
Shares of Starbucks Corp. fell 41 cents to $48.43.
— Copyright 2012 The Associated Press.