Here's How Much Stock Starbucks Repurchased in the Past Year
Like many of its peers, (NASDAQ: SBUX) allocates some of its excess cash each year toward buying back its own stock. The company uses that spending as a way to return cash to shareholders. That's because repurchasing your stock, to the extent that it reduces the outstanding share count, leaves existing shareholders with a larger relative ownership of the company. Earnings per share tend to expand more quickly, too, potentially lifting the share price.
Let's look at how much the coffee giant has spent on this capital return channel in the past year.
Starbucks has spent just under $2 billion on its own stock in the past year. Its spending has been highly variable, though. The chain spent $1 billion in the fiscal 2023 year that ran through late September 2023, for example. Spending on buybacks then jumped to $1.3 billion in the fiscal first quarter that ended in late December. This spending has been enough to push Starbucks' outstanding share count lower, meaning it more than offset any new stock issuances in the past year.
Source Fool.com
Starbucks Corp. Stock
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