Starbucks announced that its board of directors approved a 2-for-1 stock split today. It is the sixth stock split since the company’s initial public offering (IPO) in 1992. Its previous stock split happened on October 2005.
In a statement, Starbucks Chairman and CEO Howard Schultz said, “On behalf of our board of directors, the Starbucks leadership team and the 300,000 partners who wear the green apron globally, I am proud to announce this two-for-one stock split, the sixth in our 23-year history as a public company.”
According to Shultz, the stock split is a direct reflection of the increasing shareholder value over the past seven years, and Starbucks’ building of an attractive stock price.
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Shultz added that Starbucks declared the stock split at the time when its shareholders are experiencing all-time high in value as the company continues to deliver world-class customer service, and achieve record profits and revenue.
Starbucks starts trading on split-adjusted basis on April 9
The shareholders of Starbucks on record as of March 30, 2015 will receive one additional stock for every share they own as of the record date. The company will distribute the additional share on April 8, 2015.
Starbucks will start trading its common stock on a split-adjusted basis on April 9, 2015. The stock price of the company increased almost 2% to $96.14 per share at the time of this writing around 2:16 in the afternoon in New York.
Starbucks earnings guidance
Starbucks CFO Scott Maw said, “Adjusting for the stock split effectively has the impact of modestly increasing our earnings guidance for the second quarter and for fiscal 2015.”
The company said on a split adjusted basis, its previously announced GAAP earnings targets equate to $0.32 per share and the non-GAAP earnings in the range of $0.32 to $0.33 per share for the second quarter of 2015.
For the fiscal 2015, the target GAAP range of $1.77 equate to $1.79 per share and the non-GAAP range of $1.55 to $1.57 per share.
Starbucks plans to report its financial results for the second quarter on April 23, 2015.