By Lisa Beilfuss
Starbucks Corp. on Wednesday declared a 2-for-1 stock split, its
sixth such split since the coffee chain went public in 1992 but its
first in nearly a decade.
The latest split will occur at higher levels than the others.
Shares hit another all-time high Wednesday at $95.78, following
news of the split, and have been setting new tops throughout
2015.
"This split is a direct reflection of the past seven years of
increasing shareholder value, enhancing the liquidity of our
shares, and building an attractive share price," Chief Executive
Howard Schultz said in a news release.
Starbucks also said the split would boost modestly its per-share
earnings guidance for the current second quarter and fiscal year,
which ends in September.
The company now sees per-share earnings--excluding certain
costs--of 32 cents to 33 cents in the second quarter and $1.55 to
$1.57 for the year. In January, Starbucks estimated per-share
earnings before items at 64 cents to 65 cents in the second quarter
and $3.09 to $3.13 for the year.
The company announced the split and updated guidance during its
annual shareholders meeting.
The new shares will be payable April 8 to shareholders of record
March 30. Starbucks will begin trading on a split-adjusted basis
the next day.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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