NEW YORK Starbucks Corp.’s share price climbed on Friday as Wall Street welcomed news that Nelson Peltz and his related investment funds under Trian Partners had amassed a small stake in the ailing coffee giant.
The activist investor also upped his stake in The Cheesecake Factory Inc. to about 4.8 percent of the casual-dining company's 67 million total shares outstanding, according to filings with federal regulators.
Peltz and his affiliates said in a securities filing that the investment in Starbucks amounted to 842,000 shares, or just 0.10 percent of Starbucks' 728 million shares outstanding. But some investors apparently read the move as a prelude to influencing the direction of Starbucks, as Peltz did with Wendy's International Inc. and CBRL Group Inc., parent of the Cracker Barrel family-dining chain. In those situations, and others outside the restaurant business, Peltz bought up stock and then used his holdings as leverage to press for major changes.
The additional investments in restaurant companies come as Triarc Cos. Inc., the Peltz-affiliated company that owns the Arby's quick-service brand, is preparing to take over Wendy's in a stock-swap valued at $2.34 billion. In announcing the deal, Triarc indicated that it may grow its restaurant holdings through additional acquisitions.
Peltz's Trian holds a large stake in Wendy's and was instrumental in orchestrating numerous changes there, including the spinoff of the Tim Hortons doughnut and coffee brand.
News of Peltz's holding in Starbucks, which has initiated a plan to cut store growth and reinvigorate the brand amid dipping customer traffic, sent the company's stock price up more than 6 percent on Friday.
Trian's filing also disclosed holdings in Kraft Foods Inc., Tiffany & Co. and H.J. Heinz Co.