Starbucks shares rose Monday as the world’s largest coffee chain moved closer to a deal with one of the globe’s biggest activist investors—and on news another major activist name has decided to build a stake of its own. Shares initially jumped over 4% Monday amidst reports that directors at Starbucks and Elliot Management have engaged in settlement talks, and on Friday’s report from The Wall Street Journal that fellow activist firm Starboard Value wants a say in how the firm is run.
The flurry of activist activity comes as Starbucks sales have drooped in both the U.S. and China. The slump has seen shares fall about 20% year-to-date, and post a decline of 40% from their all-time of $126.06 in June of 2021. The stock was trading above the $76 mark Monday afternoon, up about 1.75% from Friday's close.
