Stockholders in 1992 who invested $1,700 in Starbucks shares were certainly celebrating the latest 2-for-1 stock split as they counted $302,048 in returns.
It is the sixth 2-for-1 split since the company went public and just one of several announcements to make everyone happy at the March annual meeting attended by 2,800 investors, employees and financial professionals.
Starbucks reaffirmed its goal to reach a market value of $100 billion, announced the national rollout of mobile order and pay and said it will open 3,500 new stores. Starbucks is also partnering with Postmates, a food and beverage delivery firm with a high-tech core. In select locations such as New York City’s Empire State Building, tenants will soon be able to order “Green Apron” service. In China, Masterkong will distribute Starbucks RTD drinks.
Howard Schultz, Starbucks c.e.o. struck a nostalgic note at the 23rd annual meeting.“The long history of Starbucks is steeped in trying to build a different type of business proposition from day one: one that achieves the balance between profitability and a social conscience. And to continually ask ourselves what it takes to build a great enduring company.
Even as our share price hits new all-time highs, we have never lost sight of this vision, and our goal of bringing our people along with us on the journey and sharing our success.”
Underpinning his expansion plans are record revenues of $16.4 billion (11% annual growth) with $1.6 billion returned to shareholders in stock repurchases and dividends. He promised a health care contribution of $233 million as well as awarding “Bean Stock” for employees totaling $210 million.