EMPLOYEE OWNERSHIP 04 12 22
SITUATION:
Starbucks faces rising costs, unionization, & China slowdown
Focus is on Using Buybacks to stabilize stocks;
May be sign of distress
Decisions are NOT made on Stock Price;
Trouble is brewing
Cutting the payout could be a public relations matter;
Schultz faces delicate balance of cost cuts & employee support
SOLUTIONS
Howard Schultz is back & to the rescue
Ordered elimination of 3 year buyback program
Seeks to invest more profit in its people
More price increases;
Hired Frank Britt as Chief Strategies
STATS:
Stock is down 25 % from year ago;
Or 3,7%;To $88
SOURCES:
WSJ Why Starbucks Went Cold Turkey on Buybacks –
https://www.wsj.com/articles/why-starbucks-went-cold-turkey-on-buybacks-11649084575
