WNYT.com

Starbucks expands buyback plans by 25M shares

Updated at: 11/15/2012 6:35 PM
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(AP) SEATTLE - Starbucks says it may repurchase up to 25 million additional shares of its common stock.

The Seattle-based coffee company says that its board approved the plans in addition to the 12.1 million shares still available under a prior authorization. The company has an estimated 749.3 million shares outstanding.

Starbucks says the plan reflects its strong cash flow and commitment to return value to shareholders. The move comes a day after Starbucks announced the acquisition of Teavana, which sells loose leaf teas, for $620 million.

Companies reward investors when the repurchase shares by increasing the value of remaining shares. The company’s per-share earnings also get a boost as results are divided among fewer shares.

Shares of Starbucks Corp. fell 41 cents to $48.43.

(Copyright 2012 by The Associated Press. All Rights Reserved.)