Activist Investor Starboard Value Takes Stake in Starbucks, Urges for Stock Price Improvement

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Activist investment firm Starboard Value has acquired a stake in Starbucks (SBUX.O), according to a report by The Wall Street Journal published on Friday. The investment firm is reportedly pushing the coffee giant to take actions aimed at boosting its stock performance. Following the news, Starbucks shares saw a notable increase of 3.2% in extended trading.

While the exact size of Starboard’s stake in Starbucks has not been disclosed, the report indicates that the hedge fund’s specific demands remain unclear. Sources cited by the Wall Street Journal revealed that Starboard has not yet made any formal requests to the company, and there has been no direct communication from the firm.

A representative from Starboard Value did not respond to multiple requests for comment. Similarly, a spokesperson for Starbucks declined to provide any details regarding the matter.

Starbucks, renowned for its premium coffee and lattes, recently reported a decline in global sales for the quarter. This drop was attributed to weaker demand in the U.S. market and a significant 14% decrease in same-store sales in China. The company is already contending with pressure from another activist investor, Elliott Investment Management, which is currently in discussions with Starbucks. Elliott is known for negotiating with companies and often securing board positions for its representatives.

Starboard Value and Elliott Investment Management have previously collaborated on investments in several high-profile companies, including eBay, Salesforce, and, more recently, Match Group. The involvement of these activist investors often signals potential strategic shifts or governance changes aimed at enhancing shareholder value.