A Starbucks in Amsterdam.
Nicolas Economou | Nurphoto | Getty Images
Elliott Management has taken a significant stake in the coffee chain. Starbucks and is working with management to find ways to improve the company’s stock price, The Wall Street Journal reported on FridayCite sources from people who know the matter well.
A representative for Elliott declined to comment. As of March 31, according to the company’s most recent disclosure, the company held no shares of Starbucks.
A Starbucks spokesperson said the company does not comment on rumors and speculation. Starbucks shares rose more than 6% on Friday.
Elliott is one of the most prolific activist investors and one of the world’s largest hedge funds. The firm has taken on a number of significant positions in recent months, including a stake in Southwest, SoftBank Group, Johnson Controls And Texas Instruments Company.
The Journal could not know the size of Elliott’s position or his specific demands, but noted that a deal was possible.
Starbucks fought its own labor union activism effort earlier this year. That effort, following an organizing effort that began in 2021, ended with the Center for Strategic Organizing withdrawing its candidacy. Talks between management and labor are ongoing.
Starbucks has faced many challenges in recent quarters and has undergone a series of leadership changes in recent years. In April, the company Disappointing quarterly resultswith same-store sales in the United States down 3% and customer traffic down 7%. The coffee chain also cut its 2024 outlook.
Starbucks reports a mid-teens rate of incomplete orders on its mobile app and says customers are coming in less often.
Chief Executive Laxman Narasimhan, who is under pressure, has spoken of the need to improve stores.
Narasimhan was personally selected by Starbucks CEO Howard Schultz to lead the company after his previous successor, Kevin Johnson, stepped down. Schultz recently considered Starbucks’ challenges, but said he has no plans to return. CEO for the fourth term.
— CNBC’s Amelia Lucas contributed to this report.
Correction: This story has been updated to correct that the Center for Strategic Organizing has withdrawn its nominees to the Starbucks board. A previous version mischaracterized the event.
