Starbucks Corporation today announced that its board of directors has authorized the repurchase of up to 10 million shares of the Starbucks’s common stock. This authorization is in addition to the 5.7 million shares that remain available for repurchase under existing authorizations. Since Starbucks’ initial share repurchase program was authorized in September of 2001, Starbucks has repurchased a total of 27.2 million shares at a cost of $1 billion under authorized programs through Wednesday, May 4, 2005.

“Starbucks business performance continues to generate strong cash flow, which enables us to execute further share buybacks, along with the ongoing investment in our growth strategy. This additional authorization to repurchase stock reflects the continued commitment by both the board of directors and Starbucks leadership team to pursuing opportunities that return value to our shareholders,” says Michael Casey, chief financial officer.

Shares will be repurchased in the open market at times and amounts considered appropriate by the Starbucks based on factors including price and market conditions. Additionally, the Starbucks’ board of directors has authorized that purchases can be made under Rule 10b5-1 of the Securities Exchange Act of 1934. A Rule 10b5-1 plan allows Starbucks to repurchase its shares during periods when the Starbucks would normally not be active in the market due to its own internal trading blackout periods. All such purchases must be made according to a predefined plan that is established when the Starbucks plan administrator is not aware of material non-public information.

News, Starbucks