Starbucks Announces 2-For-1 Stock Split

   By Lisa Beilfuss 
 

Starbucks Corp. on Wednesday declared a 2-for-1 stock split, its sixth such split since the coffee chain went public in 1992 but its first in nearly a decade.

The latest split will occur at higher levels than the others. Shares hit another all-time high Wednesday at $95.78, following news of the split, and have been setting new tops throughout 2015.

"This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price," Chief Executive Howard Schultz said in a news release.

Starbucks also said the split would boost modestly its per-share earnings guidance for the current second quarter and fiscal year, which ends in September.

The company now sees per-share earnings--excluding certain costs--of 32 cents to 33 cents in the second quarter and $1.55 to $1.57 for the year. In January, Starbucks estimated per-share earnings before items at 64 cents to 65 cents in the second quarter and $3.09 to $3.13 for the year.

The company announced the split and updated guidance during its annual shareholders meeting.

The new shares will be payable April 8 to shareholders of record March 30. Starbucks will begin trading on a split-adjusted basis the next day.

Write to Lisa Beilfuss at [e-mail]

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