Peltz discloses stake in Starbucks, Ch. Factory

Nation's Restaurant News, May 26, 2008

NEW YORK -- Activist investor Nelson Peltz and his related investment funds under Trian Partners disclosed a small initial stake in Starbucks Corp. and an increased holding in The Cheesecake Factory Inc. According to filings outlining Trian's holdings as of March 31, Peltz and his affiliates had purchased 842,070 shares of common stock in Starbucks, or about 0.1 percent of the coffee giant's shares outstanding, which totaled about 728 million, according to a recent company document. Starbucks has struggled recently with dipping customer traffic and has initiated a plan to cut store growth and reinvigorate the brand.

Trian's filing also showed it increased its stake in casual-dining operator Cheesecake to 3.2 million shares, up from just 138,588 shares it disclosed in January. The larger stake represents about 4.8 percent of Cheesecake's 67 million total shares outstanding. Under both investments, Peltz has yet to take an active role, but he is known for buying stakes at retail companies and agitating for change. Peltz's Trian holds a large stake in Wendy's and was instrumental in orchestrating changes there, including the Tim Hortons spinoff and the most recent merger agreement with Triarc Cos. Inc., the owner of the Arby's chain that Peltz also controls.