Starbucks Executing $5 Billion Accelerated Share-Repurchase Program
October 12 2018 - 9:05AM
Dow Jones News
By Chris Wack
Starbucks Corp. (SBUX) is executing a $5 billion accelerated
share repurchase-program in relation to its previously announced
plan to return $25 billion to shareholders in the form of share
buybacks and dividends through fiscal 2020.
The Seattle-based coffee chain is using proceeds from its
recently completed transaction with Nestle S.A. (NESN.EB) to
execute the program, which was effective Oct. 1.
Starbucks said the accelerated buyback is expected to be
completed as early as February 2019 and no later than March
2019.
In August, Starbucks and Nestle completed a deal granting Nestle
global perpetual rights to market Starbucks consumer and
food-service products. The agreement covers Starbucks packaged
coffee and tea brands, but excludes ready-to-drink products and all
sales of products within Starbucks' coffee shops. Nestle in May
agreed to pay Starbucks $7.15 billion in cash up front plus
royalties as part the license for the business, which has annual
sales of $2 billion.
Shares of Starbucks rose 2.5% to $56.25 premarket.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
October 12, 2018 08:50 ET (12:50 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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