Starboard’s Investment in Starbucks
Starboard Value, a prominent investment firm known for its activist strategies, has reportedly acquired a stake in Starbucks Corporation (NASDAQ:SBUX). The exact number of shares and details regarding Starboard’s plans remain undisclosed, according to a report by the Wall Street Journal.
Starbucks’ Current Challenges and Activist Pressure
In addition to Starboard, Starbucks is facing pressure from Elliott Investment Management, with whom the company has had constructive discussions, as noted by CEO Laxman Narasimhan in late July. The coffee chain is dealing with a decline in demand, resulting in two consecutive quarters of sales decrease at established locations. Furthermore, former CEO and major individual investor Howard Schultz has publicly criticized the company’s leadership for its performance.
Starbucks shares rose by 2.9% in after-hours trading in New York at 4:55 p.m.
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