Starbucks Suspends Buyback to Invest in Operations

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Starbucks Suspends Buyback to Invest in Operations
05 Apr 2022
4 min read

News Synopsis

Starbucks has announced the suspension of its billions of share buyback that the initiated last fall. The new interim Chief Executive Officer, Howard Schultz has said that move will free up cash to invest in cafes and employees. 

The suspension of the buyback program launched by Starbucks last fall represents the company's best opportunity to invest in the next phase of growth, Schultz said on Monday in line with his return as CEO of the coffee giant. 

Howard Schultz re-joined the company after Kevin Johnson announced that he would be stepping down as the CEO of the company. Schultz said that he would focus on reinvigorating Starbucks. The company is also planning to build thousands of new cafes around the world.

Earlier, Starbucks halted the share buyback in 2020 after Covid-19 affected the business. It told investors in October that it would make a new authorisation of $20 billion in dividends and buyback over three years, and about two-thirds of that spending will go to share buyback, the company said at the time.

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