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SEATTLE - Starbucks Corporation (NASDAQ:SBUX) announced Wednesday its Board of Directors has approved a quarterly cash dividend increase from $0.61 to $0.62 per share of outstanding Common Stock. The dividend will be payable on November 28, 2025, to shareholders of record on November 14, 2025, reflecting an annualized rate of $2.48 per share. According to InvestingPro data, the company currently offers a dividend yield of 2.88%, with the stock trading at $84.40.
This marks the coffee giant’s fifteenth consecutive annual dividend increase since initiating its dividend program in 2010 with a quarterly payout of $0.05 per share. The company has grown its dividend at a compound annual growth rate of approximately 17.5% since inception.
"We remain committed to returning cash to our shareholders while balancing our investments in our long-term growth strategy," said Cathy Smith, chief financial officer, in a press release statement.
The company, which operates more than 40,000 stores worldwide, also indicated it plans to hold an investor day in fiscal year 2026 to provide further details on its broader capital allocation philosophy.
Starbucks continues to implement its "Back to Starbucks" initiatives, which the company believes will drive sustainable long-term growth and improved profitability, according to the statement.
The modest dividend increase comes as the company navigates various market challenges while maintaining its commitment to shareholder returns.
In other recent news, Starbucks announced a $1 billion restructuring plan that will lead to the closure of some coffeehouses and a reduction of approximately 900 jobs. This move is expected to result in a 1% decline in net unit growth for North America by fiscal year 2025, a significant adjustment from previous growth estimates of 3.5%. Analysts at Jefferies have maintained their Underperform rating on Starbucks, citing the restructuring costs and projecting lower total expected units, including licensed locations, compared to consensus estimates. Meanwhile, TD Cowen reiterated its Hold rating with a $95 price target following the company’s new turnaround initiatives aimed at improving financial performance and brand perception.
Additionally, Starbucks’ Chief Technology Officer, Deb Hall Lefevre, has resigned, with Ningyu Chen stepping in as interim CTO. Stifel continues to hold a Buy rating on Starbucks, maintaining a price target of $105, despite the restructuring efforts. These developments come as Starbucks aims to streamline operations and enhance its market position.
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