According to sources, Elliott is now actively lobbying Starbucks to increase its stock value. On Wall Street, news of Elliott’s stake in Starbucks triggered a nearly 7 percent price increase on Friday. Activist investors often approach companies with their own turnaround plans in the hope of profiting.
Since the beginning of this year, Starbucks shares have lost more than a fifth of their value. For example, Starbucks announced at the end of April that in the first three months of this year, sales had fallen for the first time since the end of 2020.
Starbucks is said to be working on plans to improve business operations, including launching new products and also offering discount promotions to attract more customers. The company is headed by CEO Laxman Narasimhan since last year.
