Activist Elliott Reportedly Has a Significant Stake in Starbucks, in Talks With Management

Elliott Management has acquired a significant stake in Starbucks and is working with management to improve the company’s share price, according to the Wall Street Journal. Elliott is one of the most prolific activist investors and one of the largest hedge funds in the world, having taken up several sizable positions in recent months. Starbucks shares jumped more than 6% on Friday. The Journal could not learn the size of Elliott’s position nor its specific demands, but noted it was possible a settlement could be reached. Starbucks has been facing challenges for several quarters and undergone a series of leadership changes in recent years. In April, the company reported disappointing quarterly results, with U.S. same-store sales falling 3% and traffic dropping 7%. Starbucks also cut its 2024 outlook. CEO Laxman Narasimhan has mentioned the need to make improvements to stores. Starbucks CEO Howard Schultz, who recently weighed in on Starbuck’s challenges, has said he does not plan to return as CEO for a fourth stint.

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