Starbucks Founder Howard Schultz Takes the Helm as Starbucks Chief Executive Officer

Rhea-AI Summary

Starbucks announced the suspension of its stock buyback program to focus on investing in employees and stores for long-term growth. The return of founder Howard Schultz as CEO aims to reimagine the company with a focus on shared success among stakeholders. Schultz emphasized creating value for partners, customers, and communities, which he believes will ultimately benefit shareholders. Starbucks has a history of innovative employee benefits, and since its IPO in 1992, the company's stock price has increased significantly, reflecting its growth from 11 to over 28,000 stores worldwide.

Positive

• Suspension of stock buyback allows for more investment in employee and store growth.
• Howard Schultz's return as CEO is expected to drive a reimagined vision for the company.
• Starbucks has a strong history of employee benefits, improving workforce morale and retention.

Negative

• Suspending the stock buyback program may lead to short-term negative investor sentiment.

Suspends Stock Buyback Program to Invest in Starbucks Employees and Stores for Long-term Growth

SEATTLE--(BUSINESS WIRE)-- Starbucks Corporation (NASDAQ: SBUX) today marked the return of founder Howard Schultz as chief executive officer and as a director on the company’s Board.

In an early morning letter, Schultz shared with all company stakeholders a vision and invitation to join in the reimagination of the company he built, one with a storied history and an enduring mission to inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.

“I am returning to the company to work with all of you to design our next Starbucks — an evolution of our company deep with purpose, where we each have agency and where we work together to create a positive impact in the world,” he wrote.

Schultz also announced Starbucks will suspend its stock repurchasing program, effectively immediately. “This decision will allow us to invest more into our people and our stores — the only way to create long-term value for all stakeholders.”

Schultz is known for his transparent and bold leadership with a history of leading a business that can simultaneously deliver best-in-class financial performance, shared success with its people and measurable societal impact in the communities it serves.

“Our vision is to once again reimagine a first-of-a-kind for-purpose company in which the value we create for each of us as partners, for each of us as customers, for our communities, for the planet, for shareholders — comes because our company is designed to share success with each of us and for the collective success of all our stakeholders,” he wrote.

Since the company’s initial public offering in 1992, Starbucks has continued to provide innovative benefits, including access to healthcare benefits for full- and part-time employees, equity in the form of stock options, free college tuition through the Starbucks College Achievement Plan, comprehensive mental health benefits, pay equity, best-in-class paid parental leave and a national sick pay program.

During Schultz’s previous four decades as ceo and chairman, the company grew from 11 stores to more than 28,000 stores in 77 markets around the world. During his tenure, Starbucks delivered a 21,000% gain in the value of its stock price between its initial public offering in 1992 and Schultz's departure as ceo in 2017.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or www.starbucks.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220404005309/en/

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Source: Starbucks Corporation

FAQ

Why did Starbucks suspend its stock buyback program?

Starbucks suspended its stock buyback program to reinvest in employees and stores for long-term growth.

Who has returned as CEO of Starbucks?

Howard Schultz has returned as CEO of Starbucks.

What does Howard Schultz plan to focus on during his return?

Schultz plans to focus on creating a for-purpose company that benefits all stakeholders.

How many stores does Starbucks operate worldwide?

Starbucks operates over 34,000 stores worldwide.

What impact did Howard Schultz have on Starbucks' stock price?

During Schultz's previous tenure, Starbucks saw a 21,000% increase in stock price since its IPO.