Starbucks perking up on activist investor interest but a turnaround will not be easy
Starbucks SBUX is up 4% in after-hours trading after a report that activist Starboard Value has taken a stake in the company
Starbucks has been under pressure from activist investors in recent months, as the coffee chain's sales have slumped in both the US and China. In response, Starbucks has announced a number of changes to its business, including plans to close 150 stores in the US and to reduce its workforce by 5%.
However, analysts say that a turnaround for Starbucks will not be easy. The company faces a number of challenges, including rising competition from other coffee chains and the changing tastes of consumers. Additionally, Starbucks's high prices have made it a target for criticism from some consumers.
Despite the challenges, Starbucks remains a powerful brand with a loyal customer base. If the company can successfully implement its turnaround plan, it could regain its status as a growth stock.
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