Daily Management Review

Starbucks shares lose 5% after buyback


Starbucks' founder, Howard Schultz, has stated that the company's share repurchase program, which began last year, will be suspended.

Following Kevin Johnson's resignation, Mr. Schultz has been appointed as the company's interim CEO. Mr. Schultz announced the repurchase program's suspension right once, claiming that it would allow the company to focus on building its business. Starbucks would invest more in its coffee stores and employees, he said.

Howard Schultz has previously served as CEO of Starbucks on two occasions: from the 1980s to 2000, and then again from 2008 to 2017. His current position should be temporary; the corporation plans to hire a new general manager by the end of the year.

When Starbucks was in the midst of a recession in 2008, Mr. Schultz took over as CEO and helped the firm get back on track. It's not a good time for the chain, either. Starbucks stock has dropped 24% in the last year due to investor concerns that rising employee pay and other costs may damage the company's earnings in the near future.

source: reuters.com