Starbucks downgraded its full-year profit forecast for 2020 two months after raising it, sending its shares down.
Patrick Grismer, chief financial officer, said that profit growth would be “meaningfully below” the company’s 10 per cent target because it would pull forward $2 billion of planned share buybacks from 2020 to 2019.
This was necessary because of Starbucks’s “rapidly appreciating” share price, he said, and the effect would be that the company’s profit per share would be squeezed in 2020. Starbucks, the world’s largest coffee house chain, is valued at about $112 billion.
Starbucks downgraded its full-year profit forecast for 2020 two months after raising it, sending its shares down.
Patrick Grismer, chief financial officer, said that profit growth would be “meaningfully below” the company’s 10 per cent target because it would pull forward $2 billion of planned share buybacks from 2020 to 2019.
This was necessary because of Starbucks’s “rapidly appreciating” share price, he said, and the effect would be that the company’s profit per share would be squeezed in 2020. Starbucks, the world’s largest coffee house chain, is valued at about $112 billion.
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