Bullish indicating open at $55-$60, IPO prices at $37
Starbucks Corporation (NASDAQ:SBUX) announced Wednesday that its independent board members and Compensation and Management Development Committee approved a performance-based restricted stock unit (PRSU) grant for its continuing named executive officers. The equity awards, valued at $6 million each, are part of the company’s “Back to Starbucks” strategy.
The awards are 100% performance-based, with vesting eligibility following the company’s fiscal year 2027. Payouts are contingent on meeting pre-determined targets, including a threshold goal related to reducing operating expenses. If this goal is not met, the PRSUs will not vest.
Additional performance metrics include the rollout of Starbucks’ Green Apron Service program, coffeehouse upgrades, new food and beverage platforms, and a revised Starbucks Rewards program. Achieving these goals can unlock payouts up to 200% of the target value, subject to a downward adjustment if Starbucks’ total shareholder return relative to the S&P 500 is below the 50th percentile during the performance period.
Executives must remain employed through the settlement date to receive the awards. The grants are designed to align leadership incentives with the company’s turnaround plan and operational objectives.
This information is based on a statement in a filing with the Securities and Exchange Commission.
In other recent news, Starbucks is exploring a potential full sale of its operations in China, according to Caixin Global. This strategic move comes amid challenges in the Chinese market, including declining market share and increased competition from local competitors. Meanwhile, Piper Sandler has maintained its Overweight rating on Starbucks, emphasizing growth potential in the U.S. and highlighting the company’s plans to restart successful menu innovation. The firm is optimistic about the coffee chain’s trajectory over the next 12 to 18 months, despite some investor skepticism. Additionally, UBS has kept its Neutral rating and $95 price target on Starbucks, citing expectations for gradual improvement in the China business into fiscal year 2026. The investment firm suggests that Starbucks might pursue a partnership in China to leverage local expertise and resources. In other developments, Starbucks has appointed Dr. Dambisa Moyo and Marissa Mayer to its board of directors, bringing expertise in technology, transformation, and global affairs. Lastly, Starbucks CEO Brian Niccol met with U.S. Health and Human Services Secretary Robert F. Kennedy Jr. to discuss the company’s menu plans, focusing on avoiding artificial ingredients and additives.
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