Howard Schultz against potential Starbucks settlement with activist Elliott – FT

Former Starbucks (NASDAQ:SBUX) Chief Howard Schultz is opposed to the coffee chain making any settlement with prominent activist Elliott Investment Management.

Schultz has made his views known to some members of the coffee behemoth’s board, according to a Financial Times report on Friday, which cited people familiar with the matter. Schultz and Elliott have not been in contact over the matter.

Last Friday, the WSJ reported that Elliott took a “sizeable” stake in Starbucks and has been engaging with the coffee chai on ways to boost its share price at a time when profits have been pressured by wages and promotional activity.

Schultz in May said the coffee giant needs to step up focus on its U.S. stores, primarily on the customer experience, after the company’s Q2 earnings “significantly” missed expectations.

Schultz said Starbucks’ (SBUX) mobile ordering and payment platform needs to be reinvented, and its go-to-market strategy overhauled to reinforce its premium position.

Schultz first served at Starbucks from 1986 to 2000 after he bought the retail unit of the existing chain. He returned to Starbucks again from 2008 to 2017 to lead the company and then again in April 2022 in his third stint as CEO, ending his third try last year. Schultz also stepped down from the board in September.