Key TakeawaysA report that hedge fund Starboard Value has taken a stake in Starbucks sent shares of the world's biggest coffee chain higher Monday.The Wall Street Journal said it wasn't clear the size of Starboard's investment or what changes it may be calling for.Starbucks already is in settlement negotiations with activist investor Elliott Investment Management, which the paper said has also taken a stake in the company. Starbucks (SBUX) shares advanced in intraday trading Monday on word hedge fund Starbo ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Group 1 - Elliott Management and Starbucks' board of directors are in settlement talks, with discussions about a potential settlement offer that could lead to Elliott managing partner Jesse Cohn becoming a director [1][2] - The proposed settlement would allow CEO Laxman Narasimhan to retain his position and include governance improvements along with board expansion [2] - Starbucks has faced declining sales over successive quarters, particularly in China and the core U.S. market, with its stock price down 19% this year [3] Group 2 - Elliott Management has accumulated a stake in Starbucks valued at up to $2 billion, while the hedge fund is known for its activism in the technology sector [3] - The influence of Starbucks chairman emeritus Howard Schultz complicates the settlement discussions, as he has privately opposed a deal with Elliott [2] - Starboard Value has also built a position in Starbucks, but it remains unclear if they will initiate a campaign against the company [2]

Starbucks Corp (NASDAQ:SBUX) stock is up 2.5% to trade at $77 premarket, after The Wall Street Journal reported activist investor Starboard Value took a stake in the company to raise share value.The equity has been struggling since marking its worst day since 2020 back in May, after a lackluster earnings report. The 60-day moving average has also been a consistent level of pressure, guiding the shares to their July 16, two-year low of $71.55. While SBUX has since edged higher, it still carries a 21% year-to ...

Core Viewpoint - Starbucks is facing significant challenges, including declining comparable-store sales and rising costs due to inflation and labor issues, leading to investor hesitance despite the company's strong brand [1][2]. Group 1: Financial Performance - Starbucks reported a decline in global comparable-store sales growth, with a decrease of 3% for the quarter ending June 30, 2024, and a 4% decline for the quarter ending March 31, 2024 [3]. - The change in comparable transactions was -5% for June 30, 2024, and -6% for March 31, 2024, indicating a struggle to attract customers [3]. - Despite these challenges, the company generated $4.1 billion in profit over the trailing 12 months and had free cash flow of $3.8 billion during the same period, suggesting it has the financial capacity to invest in growth opportunities [5]. Group 2: Market Conditions - Inflation has made Starbucks' high-priced coffee appear even more expensive, prompting consumers to switch to cheaper alternatives [1]. - The economic environment remains uncertain, with potential risks from a global recession that could further soften demand for Starbucks products [6]. Group 3: Strategic Outlook - Starbucks is implementing more aggressive discounts to attract customers, although this may lead to a reduced average ticket size, potentially offsetting the benefits of increased foot traffic [4]. - The company is focusing on operational improvements to enhance efficiency, which could lead to better sales and profits in future quarters [5]. Group 4: Investment Considerations - Starbucks shares have declined over 20% this year and are trading close to a 52-week low of $71.55, with a trailing P/E ratio of 21, slightly below the S&P 500 average of 24 [7]. - There is a cautious sentiment regarding investing in Starbucks stock due to potential headwinds from economic conditions and the company's current challenges [7].

We also take a look at what the Olympics could mean for NBC's streaming service.In this podcast, Motley Fool analyst Bill Mann and host Mary Long discuss Microsoft's AI timeline and what "experience" means at the world's largest coffee chain.Then, Bloomberg media reporter Hannah Miller joins in for a conversation on what the Paris Olympics mean for Peacock, NBC's streaming service.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out ...

Pictured here is a McDonald's store in Yichang, Hubei province, China, on July 30, 2024.Nurphoto | Nurphoto | Getty ImagesBEIJING — A theme emerging in the latest slew of U.S. companies' earnings reports is a drag from the China market.The Chinese economy — home to more than four times the population of the U.S. — has attracted multinational corporations for decades given its large, fast-growing market. But slower growth and intense local competition, amid tensions with the U.S., are now weighing on corpora ...

LOS ANGELES, Aug. 6, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Starbucks Corporation ("Starbucks" or "the Company") (NASDAQ: SBUX) for violations of the securities laws.The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Starbucks announced its second quarter, 2024, results on May 1, 2024. The C ...

Starbucks (SBUX) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this coffee chain have returned -1% over the past month versus the Zacks S&P 500 composite's -6.7% change. The Zacks Retail - Restaurants industry, to which Starbucks belongs, has lost 2.5% over this period. Now the key question is: Where could the stock be headed in the near term?Although m ...

Core Viewpoint - Starbucks is experiencing challenges in its key markets, the U.S. and China, but is implementing a turnaround plan that shows early signs of progress, particularly in the U.S. [1][7] Group 1: Recent Performance - In the U.S., same-store sales fell by 2% in the fiscal third quarter, compared to a 7% increase a year ago, with store traffic down by 6% and average ticket price up by 4% [2] - In China, comparable-store sales dropped by 14%, a significant decline from a 46% increase a year ago, with both traffic and average ticket price decreasing by 7% [2] - Overall revenue declined by 1% to $9.1 billion, with global comparable-store sales falling by 3%, and adjusted earnings per share (EPS) decreased by 7% to $0.93 [3] Group 2: Turnaround Initiatives - Management reported "green shoots" in the U.S. due to an action plan aimed at improving scheduling, employee turnover, and inventory management [4] - The introduction of the Siren Craft System is expected to reduce wait times by 10 to 20 seconds, potentially leading to a 1% to 1.5% increase in comparable-store sales [4] - The company plans to accelerate new store builds and remodels, focusing on tier 2 and tier 3 cities, and is expanding its partnership with Gopuff to open 100 delivery-only kitchens across the U.S. [5] Group 3: Product Developments and Strategic Moves - The launch of Summer-Berry Starbucks Refreshers beverages achieved the highest first-week sales in the company's history, contributing positively to the Refreshers lineup [5] - Starbucks is exploring strategic partnerships in China to enhance its competitive position and accelerate growth, while maintaining its premium brand status [5][6] - Elliott Investment Management has taken a stake in Starbucks, indicating constructive discussions that may support the company's turnaround efforts [6] Group 4: Market Outlook - Despite the struggles in the U.S. and China, there are signs of progress in the U.S. turnaround plan, which could positively impact future results [7] - The forward price-to-earnings (P/E) ratio for Starbucks is approximately 19 based on fiscal year 2025 estimates, suggesting potential value given the brand's expansion opportunities [7][8] - While challenges in China may persist due to competitive pressures, the long-term growth potential remains significant [7]