8-KCorporate ChangesOther EventsExhibits & Filings

STARBUCKS CORP 8-K Report, Bylaw Amendment (Mar 19, 2015)

Filed March 19, 2015For Securities:SBUX

Summary

Starbucks Corporation (SBUX) announced a significant corporate action: a two-for-one forward stock split, to be effected by a stock dividend. This move, approved by the Board of Directors on March 17, 2015, will effectively double the number of outstanding shares. The stock split is scheduled to occur on April 8, 2015, with shareholders of record as of March 30, 2015, being eligible to receive the additional shares. To facilitate this, Starbucks amended its Articles of Incorporation to increase the authorized common stock from 1.2 billion to 2.4 billion shares. From an investor's perspective, a stock split is typically a neutral event in terms of the company's fundamental value. However, it often signals management's confidence in the company's future prospects and aims to make the stock more accessible to a broader range of investors by lowering the per-share price. While the total market capitalization remains the same immediately after the split, the increased liquidity and psychological appeal of a lower stock price can sometimes lead to increased trading activity and potential price appreciation over time.

Key Highlights

  • 1Starbucks Corporation announced a two-for-one forward stock split, effectively doubling the number of its outstanding common shares.
  • 2The stock split will be executed as a stock dividend, with shares distributed on April 8, 2015.
  • 3Shareholders of record on March 30, 2015, will be eligible to receive the split shares.
  • 4To accommodate the split, the company increased its authorized common stock from 1.2 billion to 2.4 billion shares.
  • 5The Board of Directors approved the stock split on March 17, 2015.
  • 6An amendment to the Articles of Incorporation was filed to reflect the increase in authorized shares.
  • 7The company issued a press release on March 18, 2015, detailing the stock split announcement.

Frequently Asked Questions

A two-for-one stock split means that for every share of Starbucks common stock you owned before the split, you will own two shares after the split. The total value of your investment should remain the same immediately after the split, as the price per share will be approximately halved. This action is intended to make the stock more accessible to a wider range of investors.

The stock dividend, which effects the two-for-one stock split, will be paid on April 8, 2015. Shareholders eligible for the split are those of record as of the close of business on March 30, 2015.

A stock split itself does not change the fundamental financial health or value of the company. However, companies often undertake stock splits when they believe their stock price has appreciated significantly and they are confident in their continued growth prospects. It can also be a signal that management believes the stock price is becoming too high for some retail investors.

No, the increase in authorized shares is a necessary administrative step to accommodate the stock split. Since the split is a proportional increase in all outstanding shares, your percentage of ownership in Starbucks will remain the same immediately after the split. The company is not issuing new shares in a way that would dilute existing shareholders.