Activist Starboard Value Acquires Stake in Starbucks, Reports WSJ

Activist investor Starboard Value has acquired a stake in Starbucks, prompting interest in how the coffee giant plans to enhance its stock performance, as reported by the Wall Street Journal. Following this news, Starbucks shares saw an increase of 3.2% in after-hours trading.

The specific size of Starboard’s investment remains unclear, and the exact requests or demands from the hedge fund have not been disclosed. Sources indicate that Starboard has not yet approached Starbucks with any particular demands.

Starboard’s spokesperson did not respond to multiple requests for clarification, and Starbucks declined to comment on the matter.

Starbucks, known for its premium coffee offerings, recently announced a decline in its worldwide sales, largely due to diminished demand in the U.S. and a significant 14% drop in same-store sales in China.

Additionally, Starbucks is already dealing with another activist investor, Elliott Investment Management, which is reportedly in discussions with the company. Elliott has a history of negotiating with firms and often ends up placing representatives on their boards.

Notably, Starboard and Elliott have collaborated in the past, having both invested in companies such as eBay, Salesforce, and most recently, Match Group.