Starbucks(NASDAQ: SBUX) went public in 1992 at an IPO price of $17 per share. As of this writing, the per-share price of Starbucks stock is about $93, so it might sound like IPO investors have a 450% gain in about 32 years.
However, this doesn't tell the whole story. Starbucks stock has split several times over the past three decades or so, and you might be surprised at the long-term returns patient investors might have.
Starbucks' stock-split history
Since going public, Starbucks has split its stock six times -- all on a 2-for-1 basis. Here's the timeline, and what it would mean if you had bought one share of Starbucks at the time of its IPO:
Year | Split | How Many Shares? |
|---|---|---|
1993 | 2-for-1 | 2 |
1995 | 2-for-1 | 4 |
1999 | 2-for-1 | 8 |
2001 | 2-for-1 | 16 |
2005 | 2-for-1 | 32 |
2015 | 2-for-1 | 64 |
Data source: Starbucks investor relations page.
So, if you had bought one share of Starbucks at the time of its IPO, you'd have 64 shares today.
How much would your IPO share be worth today?
Let's take a closer look at what this would mean. If you invested $17 in one share of Starbucks at its IPO, you'd now have 64 shares of the stock, each of which are worth about $93. So, your initial $17 investment would have grown to $5,952. Even when accounting for the trading commission you likely would have had to pay back then, this is a phenomenal return.
If you had invested $1,000 in Starbucks' IPO, this means that you would have an investment worth more than $350,000 in 2024. And that doesn't even include the effects of dividend reinvestment along the way.
Should you invest $1,000 in Starbucks right now?
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Matt Frankel has positions in Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
