Starbucks coffee shop in Amsterdam.
Nicholas Economu | Noor Photos | Getty Images
Elliott Management owns large stake in coffee chain Starbucks and is working with management to find ways to increase the company’s stock price The Wall Street Journal reported on Fridayciting people familiar with the matter.
A representative for Elliott declined to comment. As of March 31, the company did not hold shares in Starbucks.
A Starbucks spokesman 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 largest hedge funds in the world. The firm has taken a number of sizable positions in recent months, including southwest, SoftBank, Johnson Controls and Texas Instruments.
The Wall Street Journal was unable to understand the size of Elliott’s stake or its specific demands, but noted that a settlement was possible.
Earlier this year, Starbucks launched active protests with its own union. This work builds on the organizational work that began in 2021 and ended with the Center for Strategic Organization withdrawing its candidates. Dialogue between management and labor is ongoing.
Starbucks has faced several challenging quarters and has gone through a series of leadership changes in recent years. April, company Reports disappointing quarterly results, U.S. same-store sales fell by 3%, and customer traffic fell by 7%. The coffee chain also lowered its outlook for 2024.
Starbucks reports that the rate of unfulfilled orders on its mobile app is in the mid-teens and says occasional customers come in less frequently.
Chief executive Laxman Narasimhan is now under greater pressure, citing the need for store improvements.
Narasimhan was hand-picked by returning Starbucks CEO Howard Schultz to lead the company after his previous successor Kevin Johnson resigned. Schutz recently Weighing in on the challenges facing Starbucks, But said he did not plan to return Fourth term as CEO.
—CNBC’s Amelia Lucas contributed to this report.
Correction: This article has been updated to correct that the Center for Strategic Organizations withdrew its candidate for the Starbucks board of directors. A previous version incorrectly described these events.
