Coffeehouse giant Starbucks said on Wednesday that the company has slashed $580 million in expenses and announced a first-ever dividend on its common stock, at 10 cents per share.
CEO Howard Schultz announced the news at the company’s annual meeting this week. He said that the company is once again on a growth track following two years of layoffs and store closures. The dividend could eventually expand to as much as 40 percent of Starbucks’s annual profit.
Wall Street analysts saw the news as a sign that Starbucks has now become a mature company fit for capital-preservation type of investing, instead of the high-growth startup it once was in the 1990s.
“As we approach our 40th anniversary, we’ve reframed the way we work and think to create a new kind of company—one that will achieve disciplined, profitable growth by embracing the global marketplace and leveraging our brand strength through new and existing channels,” Schultz said in a statement this week.
CEO Howard Schultz announced the news at the company’s annual meeting this week. He said that the company is once again on a growth track following two years of layoffs and store closures. The dividend could eventually expand to as much as 40 percent of Starbucks’s annual profit.
Wall Street analysts saw the news as a sign that Starbucks has now become a mature company fit for capital-preservation type of investing, instead of the high-growth startup it once was in the 1990s.
“As we approach our 40th anniversary, we’ve reframed the way we work and think to create a new kind of company—one that will achieve disciplined, profitable growth by embracing the global marketplace and leveraging our brand strength through new and existing channels,” Schultz said in a statement this week.
