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Starbucks sets quarterly dividend at $0.61 per share

Published 12/11/2024, 04:18 PM
© Reuters.
SBUX
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SEATTLE - Starbucks Corporation (NASDAQ:SBUX), with a market capitalization of $111.5 billion, today announced its Board of Directors has approved a quarterly cash dividend of $0.61 per share on the company's outstanding Common Stock. The dividend is payable on February 28, 2025, to shareholders of record as of February 14, 2025. The current dividend yield stands at 2.49%, reflecting the company's strong commitment to shareholder returns. According to InvestingPro, Starbucks has maintained and raised its dividend for 15 consecutive years.

The announcement comes as part of the company's regular dividend distribution, which provides a return to its shareholders. The approved dividend reflects Starbucks' ongoing commitment to its shareholders and is in line with the company's historical practice of providing quarterly dividends.

Starbucks, a global coffeehouse chain founded in 1971, has grown into a premier roaster and retailer of specialty coffee with more than 40,000 stores worldwide. The company prides itself on ethically sourcing and roasting high-quality arabica coffee and aims to deliver a unique Starbucks Experience to customers through every cup.

The company's forward-looking statements indicate plans and expectations for future business opportunities, expansions, and initiatives. Trading at a P/E ratio of 29.7, InvestingPro analysis reveals 8 additional key insights about Starbucks' valuation and growth prospects. However, Starbucks also acknowledges that these forward-looking statements involve risks and uncertainties that could cause actual results to differ from historical experience or projections. The risks include changes in consumer preferences, market conditions, supply chain issues, economic factors, and the ability to protect intellectual property.

Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on information available as of the date of the press release. Starbucks does not undertake any obligation to update the statements in light of new information or future events.

This dividend announcement is based on a press release statement from Starbucks Corporation and provides shareholders with pertinent financial information regarding the company's dividend policy.

In other recent news, financial and operational performance metrics for U.S. restaurant stocks have been analyzed by Bernstein, revealing a year-on-year decline in same-store sales of 1.0%. Despite this downturn, the sector may have weathered the worst of the decline. Bernstein analysts maintain a positive outlook, highlighting Chipotle Mexican Grill (NYSE:CMG) and Wingstop (NASDAQ:WING) for their exceptional value propositions and industry outperformance.

Meanwhile, Starbucks Corp received a downgrade from Neutral to Sell from Redburn-Atlantic due to concerns over the coffee giant's ability to sustain growth and manage rising costs. The firm also expressed skepticism regarding Starbucks' recovery plan, which includes streamlining operations and increasing investments.

In other developments, Starbucks reported a 3% drop in Q4 revenue to $9.1 billion and a 24% fall in earnings per share to $0.80. The company has suspended guidance for the fiscal year 2025 as it reassesses strategies. On a different note, Chipotle Mexican Grill faces a class-action lawsuit filed by shareholders over undisclosed customer dissatisfaction, which has impacted the company's profit margins. These are just a few of the recent developments in the restaurant sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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