Coffee chain Starbucks has declared its first dividend, joining food and beverage firms like McDonald's and Coca-Cola in making payouts to shareholders.
The firm’s CEO Howard Schultz said at its annual meeting that the move
signals a reframing of its growth strategy.
He says the dividend is an opportunity to reward its shareholders.
Mr Schultz bought Starbucks in 1987 and transformed the small Seattle
outfit into one of the world's most recognized brands.
He was at the helm at the fast-growing company from 1987 to 2000 and
remains a very active chairman.
Mr Schultz retook the reins in 2008 and slashed nearly 600 million US
dollars in costs by shuttering hundreds of US stores.
He also put the brakes on aggressive international expansion.
At the annual meeting, Mr Schultz also says Starbucks is now ready to
expand its US store base and accelerate international expansion.
He also expects to turn its Via instant coffee and Seattle's Best Coffee
into billion-dollar businesses.
In addition, the company has announced plans to buy back 15 million
common shares on top of 6.3 million shares remaining under previous
authorizations.
-- 938Live