4 Apr 2022
Starbucks’ Schultz to Halt Stock Repurchasing program as he Returns
The Index Today
Former chief executive Howard Schultz of Starbucks Corp ( NASDAQ: #SBUX ) announced on Monday the suspension of the company's stock repurchasing program, as he returns this week to lead the global coffee chain for the third time.
Schultz said in a letter to Starbucks stakeholders that the suspension which is effective immediately, will allow Starbucks to invest more in the company's people and its stores.
The move comes as the company faces realities including pinched supply chains, effects from the coronavirus pandemic and heightened tensions and political unrest, Schultz added.
Reuters reported that the Starbucks announced last month that Schultz would take over as interim CEO, following the retirement of Kevin Johnson. Shares of the coffee chain shot up about 5% on March 16, the day of the announcement.
According to a news release, Schultz is practically synonymous with the company he took over in 1987. During his previous four decades as chief executive and chairman, the company grew from 11 stores to more than 28,000 in 77 markets worldwide.
"I am returning to the company to work with all of you to design that 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," Schultz added.
©Photo: Jason Alden/Bloomberg