A brief overview of Starbucks’ investment strategies, focusing on their stock repurchasing program.
This paper outlines Starbucks’ stock repurchasing program designed to achieve various investment goals. The paper briefly discusses the company’s financing strategies, and includes a number of relevant statistics.
`Due to the nature of Starbucks’ business, it is constantly seeking financing for new business ventures and expansions (Boone, 2000). It first obtained public financing through an Initial Public Offering (IPO) in 1992. It first initiated a share repurchase plan in September of 2001 and from September, 2001 through June, 2002 it has repurchased 3.5 million shares of it common stock at a cost of $51.6 million dollars (Moran, 2002). In June of 2002, Starbucks announced a stock re-purchase program. Involving an additional 10 million shares (Moran, 2002).`