Starbucks’ chief executive proclaimed its once-stumbling brand is back in business after two years of layoffs and store closings, while the coffee giant issued its first-ever dividend for investors on Wednesday.
Speaking in front of thousands of shareholders and employees at the company’s annual meeting in Seattle, CEO Howard Schultz said the brand’s ambitious turnaround effort sliced $580 million from its expenses and the turnaround is now taking hold.
“It’s been a long two years,” he said. “But the company is extremely healthy and robust.”
Earlier in the day, Starbucks announced the dividend, pledging to return 10 cents per share to investors and ultimately boosting that payment to as much as 40 percent of its annual profit. It also will expand its effort to buy back its own shares.
“Both the dividend and share repurchase programs are strong signals of the health of the company,” said chief financial officer Troy Alstead.
