Elliott Management has taken a significant stake in coffee chain Starbucks and is engaging with management to find ways to improve the company’s share price, the Wall Street Journal reported Friday, citing people familiar with the matter.

Representatives for Elliott declined to comment. The firm did not hold a Starbucks stake as of March 31, its most recent disclosure.

A Starbucks spokesperson said the company does not comment on rumors and speculation. Starbucks shares jumped more than 6% Friday.

Elliott is one of the most prolific activist investors and one of the largest hedge funds in the world. The firm has taken up a number of sizable positions in recent months, including stakes at Southwest, SoftBank, Johnson Controls and Texas Instruments.

The Journal could not learn the size of Elliott’s position nor its specific demands, but noted it was possible a settlement could be reached.

Starbucks contended with an activist effort from its own workers unions earlier this year. That effort, off the back of an organization effort that began in 2021, ended with the Strategic Organizing Center withdrawing its candidates. Conversations between management and labor are ongoing.

Starbucks has been facing challenges for several quarters and has undergone a series of leadership changes in recent years. In April, the company reported disappointing quarterly results, with U.S. same-store sales falling 3% and traffic dropping 7%. The coffee chain also cut its 2024 outlook.

Starbucks reported rates of incomplete mobile app orders in the mid-teens and said occasional customers came in less often.

CEO Laxman Narasimhan, now under heightened pressure, has mentioned the need to make improvements to stores.

Narasimhan was hand-picked by returnee Starbucks CEO Howard Schultz to lead the company after his prior successor, Kevin Johnson, stepped down. Schultz recently weighed in on Starbuck’s challenges, but has said he does not plan to return as CEO for a fourth stint.

— CNBC’s Amelia Lucas contributed to this report.

Correction: This story has been updated to correct the Strategic Organizing Center withdrew its candidates for the Starbucks board of directors. A previous version mischaracterized the events.