SBUX NEEDS A LABOR LAWYER
Starbucks has hired Frank Britt, who previously served as CEO of workforce development firm Penn Foster, as chief strategy officer. Matthew Ryan previously served as CSO but has not worked at Starbucks since 2018. According to a bio on Starbucks ' website, Britt will be responsible for developing long-term strategies focusing on employees and customers and joined the company in April. The news of Britt's hire follows a dramatic week for Starbucks, which began with interim CEO Howard Schultz suspending stock buybacks and ended with Starbucks Workers United winning six elections in two days. SBUX also posted a job listing on April 6 seeking a labor lawyer with the experience needed:
- Significant experience managing labor organizing campaigns and related NLRB proceedings, including bargaining unit certification, litigating unfair labor practice charges, defending Section 10(j) injunction matters, and strike contingency planning.
- Demonstrated experience in negotiating collective bargaining agreements, litigating bargaining agreement disputes, and enforcement of a bargaining agreement.
USFD is a DOUBLE?
Sachem Head, which has been a holder of US Foods since 2018, disclosed in October that it had acquired a 5.1% position in the company. Sachem Head now has an 8.7% stake in US Foods and has argued that if USFD can get its valuation levels closer to peers such as Sysco Corp. (SYY), its shares could see a 100% upside. Sachem Head yesterday filed an updated preliminary proxy material with the SEC in connection with US Foods' upcoming 2022 Annual Meeting. The USFD activist investor said it's reducing the number of directors it's nominating on the USFD board as it tempers its plans to take control of the food distributor. Sachem Head cut the director nominees to five from seven after US Foods, late last month, named two new independent directors to the board and announced that former US Foods CEO John Lederer would not stand for reelection, according to a statement. The news comes after a disclosure Monday that the US Foods board offered a possible settlement with Sachem Head that would have the activist add two of its director nominees to the board, and the food distributor would form a five-member committee charged with the "evaluation of avenues to create shareholder value."
"We remain open to reaching a constructive resolution with US Foods that ensures the appropriate level of change takes place," Sachem Head said in the statement. "Should that not occur, we look forward to engaging with our fellow stockholders and taking the steps we believe are necessary to achieve the best long-term outcome for all of the company's stakeholders." Sachem Head described the US Foods settlement offered on Saturday as "substantially similar" to US Foods initial offer to settle on December 21, where Sachem Head was offered two seats on the board, according to fund's latest proxy filing. Sachem Head Managing Partner Scott Ferguson has urged the company to publicly announce that it will pursue strategic alternatives or start an immediate search for a new CEO.
We remain SHORT USFD, it's likely never to get an SYY valuation, and the current economic cycle is putting pressure on profitability!
NFIB SMALL Business Outlook
The Headline Small Business Confidence fell for a 3rd month, sinking to the lowest level in 24-months, the Forward Outlook series cratered to an all-time low. We remain broadly SHORT select restaurant companies like Casual Dining and Foodservice Distributors.
