Activist involvement is heating up at Starbucks , increasing the likelihood that the coffee chain makes changes necessary to boost its languishing stock price.
This one-two punch of activist news is sending shares of Starbucks higher by more than 2% Monday, to nearly $77 each.
We upgraded our rating on Starbucks' stock to a buy-equivalent rating last month on hopes that Elliott's presence would lead to positive changes inside the company.
Board seats aside, Elliott's exact plan to lift Starbucks' stock is not known.
This is not the first time Elliott and Starboard have been in a Club stock at the same time.
Persons:
Jeff Smith's, It's, John's, Elliott Management —, Jesse Cohn, Cohn, Satya Nadella, Elliott, Jim Cramer, Jim, That's, Laxman Narasimhan, Wells Fargo, Jim Cramer's, Beata Zawrzel
Organizations:
Street Journal, Olive Garden, Darden, CNBC, Microsoft, Starbucks, Club, Constellation Brands, Nurphoto, Getty
Locations:
China, North America, Salesforce, Krakow, Poland