SEATTLE - Starbucks Corporation (NASDAQ: NASDAQ:SBUX) today announced its decision to pay a quarterly cash dividend of $0.57 per share on the company's Common Stock. Shareholders on record as of August 16, 2024, will be eligible to receive the dividend, which is scheduled to be distributed on August 30, 2024.
This announcement follows Starbucks' continued global presence as a leading roaster and retailer of specialty coffee, with nearly 39,000 stores worldwide. The company has consistently focused on ethically sourcing and roasting high-quality arabica coffee and is known for its commitment to excellence and its guiding principles.
The dividend declaration is a part of Starbucks' regular financial practices and is aligned with the company's strategy to deliver shareholder value. Dividends are a way for Starbucks to share its financial success with its stockholders, and the consistent payment of dividends can be seen as a sign of the company's financial health and stability.
Still, it is important to note that forward-looking statements were also included in the company's announcement, which involve risks and uncertainties. These statements are based on management's current expectations and projections about future events.
While these forward-looking statements reflect Starbucks' current views with respect to future events, actual results could vary materially from those anticipated due to a variety of factors.
Factors that could cause actual results to differ include, but are not limited to, changes in consumer preferences, global economic conditions, the availability and cost of labor and raw materials, and the impact of health epidemics or pandemics.
Starbucks has outlined these and other risks under the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as other filings with the SEC.
Investors and shareholders are encouraged to review these statements and the associated risks to understand better the potential future performance of the company. The information provided is based on a press release statement from Starbucks Corporation.
In other recent news, Starbucks Corporation and Coca-Cola (NYSE:KO) Co. have initiated processes to safeguard their trademarks in Russia, despite having ceased operations in the country. Starbucks also recently emerged victorious in a Supreme Court case regarding the firing of pro-union workers. Goldman Sachs has initiated coverage on Starbucks stock with a Buy rating, citing potential growth.
The Brazilian restaurant chain operator, Zamp, is set to acquire the rights to operate Starbucks in Brazil for $22.7 million. Amid heightened competition, Starbucks has been issuing more discount coupons in China to maintain its market presence. These developments are part of the recent news impacting the companies.
InvestingPro Insights
As Starbucks Corporation (NASDAQ: SBUX) announces its upcoming dividend payment, investors may consider the company's financial metrics and market performance to gauge the sustainability of such shareholder returns. With a market capitalization of $90.5 billion, Starbucks maintains a significant presence in the market.
The company's Price to Earnings (P/E) ratio stands at 21.95, reflecting investor sentiment about its earnings potential. Despite a challenging economic landscape, Starbucks has demonstrated resilience with a revenue growth of 7.45% over the last twelve months as of Q2 2024, signaling robust operational performance.
Starbucks has also shown a commitment to returning value to shareholders, as evidenced by its history of increasing dividends for 14 consecutive years, a testament to its financial stability and confidence in future profitability. An InvestingPro Tip highlights the company's status as a prominent player in the Hotels, Restaurants & Leisure industry, further solidifying its competitive positioning. Moreover, analysts predict the company will remain profitable this year, which is crucial for dividend sustainability.
For those looking to delve deeper into Starbucks' financial health and stock performance, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company's strategic and financial outlook. Interested readers can explore these tips and make more informed investment decisions by visiting https://www.investing.com/pro/SBUX and using the promo code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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