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Former Starbucks (NASDAQ: SBUX) Chief Executive Howard Schultz opposed any settlement between the coffee chain and prominent activist Elliott Investment Management.
Schultz has made his views known to some members of the coffee giant’s board, according to the Financial Times Report The news said on Friday, citing people familiar with the matter. Schultz and Elliott have not yet been contacted for this story.
On Friday, the Wall Street Journal reported that Elliott holds a “sizable” stake in Starbucks and has been working with the coffee chain on ways to boost its stock price as profits come under pressure from wages and promotions .
Schultz said in May that the coffee giant needed to sharpen its focus on U.S. stores, primarily on customer experience, after the company’s second-quarter earnings fell “significantly” below expectations.
Schutz said Starbucks’ ( SBUX ) mobile ordering and payment platform needs to be redesigned and its go-to-market strategy needs to be overhauled to solidify its premium position.
Schultz first worked at Starbucks from 1986 to 2000 after purchasing the existing chain’s retail division. He returned to Starbucks to lead the company again from 2008 to 2017, taking on the role of CEO for a third time in April 2022, ending his third try last year. Schultz also resigned from the board in September.
