Elliott Management Takes Significant Stake in Starbucks

Starbucks' stock surged nearly 7% following reports that activist investor Elliott Management has taken a significant stake in the company, aiming to boost its share price. Analysts believe Elliott's involvement could prompt essential changes in Starbucks' growth strategies, capital investments, and supply chain management. Starbucks has faced recent criticisms, including long wait times and declining sales, with CEO Laxman Narasimhan under pressure to improve performance. Activist investors like Elliott have a history of driving significant changes in struggling businesses, and their engagement is seen as a potential catalyst for Starbucks' turnaround. Despite recent gains, Starbucks' stock remains down over 20% in the past year, indicating ongoing challenges for the coffee giant.