Starbucks expands buyback plans by 25M shares

LONDON, ENGLAND - OCTOBER 16: The signage on a branch of Starbucks Coffee on October 16, 2012 in London, England. It has been reveled that Starbucks, the world's second largest coffee chain, has paid no tax in the UK for the past three years despite sales exceeding 1 billion GBP. Since first trading in the UK in 1998 Starbucks has paid 8.6 million GBP in income tax with total sales of over 3 billion GBP in the same period. (Photo by Oli Scarff/Getty Images)
Oli Scarff

SEATTLE Starbucks (SBUX) says it may repurchase up to 25 million additional shares of its common stock.

The Seattle-based coffee company says that its board approved the plans in addition to the 12.1 million shares still available under a prior authorization. The company has an estimated 749.3 million shares outstanding.

Starbucks says the plan reflects its strong cash flow and commitment to return value to shareholders. The move comes a day after Starbucks announced the acquisition of Teavana, which sells loose leaf teas, for $620 million.

Companies reward investors when the repurchase shares by increasing the value of remaining shares. The company's per-share earnings also get a boost as results are divided among fewer shares.

Shares of Starbucks fell 41 cents to $48.43.