The coffee giant has been struggling to combat long lines and steep competition.
Activist investor Elliott Investment Management has reportedly built a sizable position in Starbucks — sending the coffee chain’s stock soaring late in Friday’s trading day.
Elliott has a history of shaking up struggling businesses. The firm has recently pushed for changes at companies including Southwest Airlines and software company Salesforce.Mastermind mom behind $8M retail theft ring that hit Sephora, Ulta Beauty gets 5 yearsStarbucks’ stock price took a hit in April when the chain, the world’s biggest coffee company by location and sales, reported a drop in same-store sales for the first time in nearly three years.
Narasimhan has had to lower earnings estimates several times since he took the helm and Starbucks market value has plunged – from nearly $115 billion under Schultz to $89 billion as of Friday. The coffee chain has also begun tapping employees to act as “play callers” who step away from drink production when stores are especially busy and help out with whatever extra tasks are needed to prevent logjams.The news of Elliott’s push for change comes just months after a coalition of labor unions ended its boardroom fight at Starbucks after the company agreed to work toward reaching labor agreements.
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