With over 32,000 outlets, Starbucks is a coffee icon. So who owns this global coffee giant? Who bought the company in 1987? Howard Schultz. Schultz, a famous entrepreneur and philanthropist, was Starbucks CEO twice. Starbucks has grown into the world’s largest coffee chain under his leadership. Starbucks, headquartered in Seattle, Washington, has grown from its 1971 Pike Place Market roots. Today, the organization shows how a good plan may lead to huge growth.
Who Owns Starbucks. Starbucks is one of the most popular coffee chains in the world, with thousands of locations in more than 80 countries. However, many people wonder who actually owns the company. The answer is not as simple as it may seem. Checkout: Starbucks SWOT 2023 | SWOT Analysis of Starbucks
Starbucks is a publicly traded company, which means that it is owned by its shareholders. The largest shareholders are asset managers Vanguard and BlackRock, which respectively own 9.2% and 6.6% of Starbucks. Other major shareholders include State Street, Magellan Asset Management, and former CEO Howard Schultz, who owns 1.9% of the company. While these shareholders have a significant stake in the company, they do not have complete control over its operations. The company is run by a board of directors, who are elected by the shareholders.
Who Owns Starbucks | History of Ownership
Founding and Early Years
Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker at Seattle’s Pike Place Market. During the early years, the company only sold coffee beans and coffee-making equipment. The first Starbucks location opened in 1971 at Pike Place Market in Seattle, Washington. By the end of the 1970s, Starbucks had three locations in the Seattle area.
Howard Schultz Era
In 1987, the original owners sold the Starbucks brand to a coffee business owner, Howard Schultz, who piggybacked on top of his existing brands to expand the company aggressively. Schultz had a vision to create a coffee culture in America that would replicate the experience of Italian coffeehouses. In the same year, the first Starbucks locations opened outside of Seattle in Vancouver, British Columbia, and Chicago, Illinois. Schultz continued to develop the company, and by the early 1990s, Starbucks had become a household name.
Post-Schultz Ownership
Schultz stepped down as CEO in 2000, and Orin Smith took over. In 2005, Jim Donald replaced Smith as CEO. In 2008, Schultz returned as CEO and led the company through a period of rapid expansion. By 2012, Starbucks had over 18,000 stores in 60 countries. In 2017, Kevin Johnson became CEO, and Schultz stepped down to focus on his philanthropic ventures. Today, Starbucks is one of the world’s largest coffeehouse chains, with more than 32,000 stores globally by the early 21st century.
Current Ownership
As of October 2023, Starbucks is a publicly traded company with a market capitalization of over $100 billion. The largest shareholders of Starbucks are institutional investors, including mutual funds and pension funds. The top five institutional shareholders of Starbucks are:
- Vanguard Group, Inc.
- BlackRock Inc.
- State Street Corporation
- Fidelity Management & Research Company
- Capital World Investors
Together, these five investors own approximately 20% of Starbucks’ outstanding shares. Other institutional investors, including T. Rowe Price and Northern Trust Corporation, also hold significant stakes in the company.
In addition to institutional investors, individual investors also own shares of Starbucks. As of 2022, there were approximately 2.3 million individual shareholders of Starbucks.
Starbucks’ founder, Howard Schultz, was a significant shareholder in the company until he sold most of his shares in 2021. Schultz stepped down from the company’s board in September 2023. Currently, no individual or group owns a controlling stake in Starbucks.
Overall, Starbucks’ ownership is diverse and includes a mix of institutional and individual investors. The company’s shares are traded on the NASDAQ stock exchange under the ticker symbol SBUX.
Starbucks Corporation has a diverse group of major shareholders, including institutional investors, asset managers, and the company’s founder and former CEO. As of December 2022, the largest shareholders are:
- Vanguard Group, Inc., 9.2%
- BlackRock, Inc., 6.6%
- Howard Schultz (founder and former CEO): 1.9%
Institutional investors own the majority of Starbucks shares, accounting for 72.33% of the company’s outstanding shares. This includes large investment firms such as State Street Corporation, Capital Research Global Investors, and T. Rowe Price Associates.
Starbucks’ largest shareholder, Vanguard Group, Inc., is a Pennsylvania-based investment management company with over $7.5 trillion in assets under management. BlackRock, Inc., the second-largest shareholder, is a global investment management firm with over $9 trillion in assets under management.
Howard Schultz, who served as CEO of Starbucks from 1987 to 2000 and again from 2008 to 2017, owns 1.9% of the company’s outstanding shares. Schultz is credited with growing the company from a small coffee shop in Seattle to a global brand with over 31,000 locations worldwide.
Other notable shareholders include the company’s current CEO, Kevin Johnson, who owns 0.2% of the outstanding shares, and former Microsoft CEO Steve Ballmer, who owns 0.3% of the outstanding shares.
Overall, Starbucks’ major shareholders are a mix of institutional investors, asset managers, and key individuals who have played a significant role in the company’s growth and success.
Ownership Structure
Starbucks is a publicly traded company, which means it is owned by its shareholders. As of 2023, no single shareholder holds a dominant stake in the company. Instead, ownership is spread out among a large number of institutional, insider, and retail investors.
According to Investopedia, the top five shareholders of Starbucks are:
- Vanguard Group, Inc., 9.2%
- BlackRock, Inc., 6.6%
- State Street Corporation: 4.5%
- Fidelity Management & Research Company: 4.0%
- The Capital Group Companies, Inc., 3.8%
These are all institutional investors, which means they manage large amounts of money on behalf of their clients, such as mutual funds, pension funds, and insurance companies.
Insider ownership, which includes the company’s executives and directors, makes up only a small percentage of total ownership. As of 2023, insider ownership of Starbucks is approximately 0.2%, according to WallStreetZen.
Retail investors, or individual investors, also own a portion of Starbucks. However, it is difficult to determine the exact percentage of ownership held by retail investors.
Overall, Starbucks has a diverse ownership structure, with no single shareholder holding a controlling stake in the company. This can be seen as a positive for the company, as it reduces the risk of any one shareholder exerting too much influence over the company’s operations and decision-making processes.
Ownership changes over time.
Starbucks has undergone several ownership changes over the years. In 1971, the company was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker. During the early 1980s, the company was sold to Howard Schultz, who later became the CEO. Schultz’s first tenure lasted from 1986 to 2000.
In 2008, Schultz returned to the company as CEO, replacing Jim Donald. During his second tenure, Schultz oversaw the company’s growth and expansion into new markets. In 2017, Schultz announced that he was stepping down as CEO, and Kevin Johnson took over the role.
As of 2023, Starbucks is a publicly traded company with several major shareholders. According to Investopedia, the top five shareholders of Starbucks are Vanguard Group, BlackRock, State Street, Magellan Asset Management, and former CEO Howard Schultz.
Over the years, Starbucks has also made several acquisitions and partnerships. In 2012, the company acquired Teavana, a specialty tea retailer. In 2018, Starbucks formed a partnership with Nestle to sell Starbucks-branded products in grocery stores and online.
Despite these ownership changes and partnerships, Starbucks has remained a popular and successful coffee chain. As of 2023, the company has over 30,000 stores worldwide and continues to expand into new markets.
Impact of Ownership on Starbucks’ Success
Starbucks is one of the most successful coffee chains in the world, with over 32,000 stores in 83 countries. The ownership structure of Starbucks has played a significant role in its success. In this section, we will explore the impact of ownership on Starbucks’ success.
Company-Owned Model
Starbucks has primarily relied on a company-owned model, where the company owns and operates its stores. This model has allowed Starbucks to have more control over the quality of its products and the overall customer experience. By owning its stores, Starbucks can ensure that its stores are consistent in terms of design, layout, and ambiance.
The company-owned model has also allowed Starbucks to maintain a high level of quality control over its products. Starbucks has strict guidelines for how its coffee is roasted, brewed, and served. By owning its stores, Starbucks can ensure that these guidelines are followed consistently across all its locations.
Shareholder Ownership
Starbucks is a publicly traded company, and its success is also influenced by its shareholders. Shareholders provide financial resources to the company, which allows Starbucks to expand its operations and invest in new products and services. Shareholders also have a say in the company’s strategy and can provide valuable feedback to the management team.
However, shareholder ownership can also have its drawbacks. Shareholders may prioritize short-term profits over long-term growth, which can lead to decisions that are not in the best interest of the company’s long-term success. Additionally, shareholder activism can be a distraction for the management team, taking their focus away from running the business.
Founder Influence
Starbucks was founded by Jerry Baldwin, Gordon Bowker, and Zev Siegl in 1971. Although none of the founders are still involved in the day-to-day operations of the company, their influence can still be felt. For example, Howard Schultz, who served as CEO of Starbucks from 1987 to 2000 and again from 2008 to 2017, was heavily influenced by the company’s founders and their vision for the company.
The influence of the founders has also been felt in the company’s culture. Starbucks has a strong culture of community and social responsibility, which can be traced back to the company’s founding principles.
In conclusion, the ownership structure of Starbucks has played a significant role in its success. The company-owned model has allowed Starbucks to maintain a high level of quality control over its products and the overall customer experience. Shareholders have provided financial resources and valuable feedback to the company, but their influence can also have its drawbacks. Finally, the influence of the company’s founders can still be felt in the company’s culture and vision.
Public vs. private ownership
Starbucks is a publicly traded company, which means that it is owned by shareholders who can buy and sell shares of the company on the stock market. As of October 2023, Starbucks is listed on the NASDAQ stock exchange under the ticker symbol SBUX.
Public companies are required to disclose financial information to the public, including quarterly earnings reports and annual reports. This level of transparency provides investors and the general public with a clear picture of the company’s financial health and performance.
On the other hand, private companies are owned by a select group of individuals or entities and are not publicly traded. Private companies are not required to disclose financial information to the public, which can make it difficult for outsiders to assess the company’s financial health and performance.
One advantage of private ownership is that the owners have more control over the company’s operations and decision-making processes. Private companies are not subject to the same level of regulatory oversight as public companies, which can allow for more flexibility in decision-making.
However, public ownership can provide a company with access to a larger pool of capital, which can be used to fund growth and expansion. Public companies can also use their stock as a form of currency to acquire other companies or attract top talent.
Overall, the decision to go public or remain private is a complex one that depends on a variety of factors, including the company’s financial goals, management style, and growth strategy. In the case of Starbucks, the decision to go public has allowed the company to raise capital and expand its operations on a global scale.
Starbucks’ Ownership Compared to Competitors
Starbucks is a publicly traded company, meaning that it is owned by shareholders who own shares of the company’s stock. As of October 2023, Starbucks has a market capitalization of approximately $120 billion and is listed on the NASDAQ stock exchange under the ticker symbol SBUX.
Compared to its competitors, Starbucks’ ownership structure is relatively straightforward. The largest shareholder of Starbucks is Howard Schultz, the company’s former CEO, who owns approximately 6.6% of the company’s outstanding shares. Other notable shareholders include The Vanguard Group, BlackRock, and State Street Corporation, all of which are institutional investment firms that own large stakes in a variety of companies.
In contrast, some of Starbucks’ competitors have more complex ownership structures. For example, Dunkin’ Brands, the parent company of Dunkin’ Donuts and Baskin-Robbins, is owned by Inspire Brands, a private equity firm that also owns other restaurant chains such as Arby’s and Buffalo Wild Wings. Similarly, Tim Hortons, a Canadian coffee and donut chain, is owned by Restaurant Brands International, a multinational fast food holding company that also owns Burger King and Popeyes Louisiana Kitchen.
Despite these differences in ownership structures, all of these companies are focused on providing high-quality coffee and other beverages to customers around the world. While Starbucks may have a more straightforward ownership structure than some of its competitors, its commitment to quality and customer service has helped it remain a leader in the industry for over 50 years.