Medtronic plans to add two independent directors after Elliott takes large stake
The medical-device maker said veteran med-tech executives John Groetelaars, once interim CEO for Dentsply Sirona (XRAY.O), opens new tab, and Bill Jellison, formerly CFO at Stryker (SYK.N), opens new tab, would join its board as independent directors.
Medtronic also raised its full-year profit forecast for fiscal 2026 and said it expects a smaller hit of about $185 million from U.S. President Donald Trump's tariffs, versus the $200 million to $350 million it had previously expected.
The company's finance chief, Thierry Pieton, said in a conference call that execution of mitigation efforts helped reduce the impact from tariffs.
Shares of Medtronic, which have risen 16% so far this year, fell 5% in early trading.
Edward Jones analyst John Boylan said investors may be disappointed in the unchanged fiscal-year 2026 sales growth forecast despite the company's strong first-quarter results.
"Investors were hoping for more operating improvements and more sales growth than we got this quarter and in guidance," Boylan said.
"Our decision to become one of Medtronic's largest investors was driven by our strong conviction that the company is entering a new chapter of exceptional value creation defined by accelerating growth, operational improvement and enhanced strategic clarity," said Elliott Partner Marc Steinberg.
Elliott, which has not disclosed the value of its stake in the company, did not immediately respond to a Reuters request for the details.
Medtronic said one of the new committees would seek tuck-in mergers and acquisitions, research and development investments and potential divestitures, while the other would look to boost earnings growth.
The panels, to be led by CEO Geoff Martha, will include Groetelaars and Jellison.
"We view these changes as an incrementally positive development for Medtronic," Leerink Partners analyst Mike Kratky said in a note, pointing to Elliott's track record of boosting share performance for companies such as Cardinal Health (CAH.N), opens new tab.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
3 minutes ago
- Daily Mail
Fans divided over McDonald's latest plan to grab Starbucks customers
McDonald's is rolling out a new lineup of iced drinks in more than 500 US restaurants in a fresh threat to Starbucks. Bosses at the Golden Arches are drawing on lessons learned from their CosMc's experiment. The chain will roll out about 10 beverages, including Toasted Vanilla Frappe, Sprite Lunar Splash, Strawberry Watermelon Refresher, Popping Topic Refresher, and Creamy Vanilla Cold Brew. CosMc's, launched in 2023, was McDonald's way of experimenting with bold flavors and unique drinks before bringing them to a wider audience. Although the mini-chain closed earlier this year, the new iced drinks borrow directly from the flavors and customer feedback tested at those locations. Social media reactions have been mixed. Some customers praise the inventive flavors, while others say they feel like a desperate bid for attention. 'They look good and I'm not their target audience, but I may have to try them, just as a celebration of them actually listening to their customer,' a LinkedIn member wrote. 'It just doesn't feel on brand for I'm not sure about the name either. Time will tell,' a fan commented. McDonald's will begin testing several new drinks at over 500 restaurants on September 2 The drinks will launch at locations across Wisconsin and Colorado on September 2. McDonald's says the test is 'a big step' in its broader plan to expand cold beverage options nationwide. They're also similar to popular beverages served by competitors like Starbucks, Taco Bell and Wendy's. McDonald's has a history of experimental concepts, some more successful than others — including its McPlant meat-free burger and CosMc's spinoff brand. The company opened its first CosMc's in 2023 a way to test new beverages to add to its core menus in its main restaurants. The first location in Bolingbrook, Illinois initially saw double the number of drive-thru visitors compared to an average McDonald's stores, but business slowed. Although the chain initially planned 10 CosMc's, it peaked at five and closed the remaining locations in June this year. 'We're seeing real momentum in beverages, with more people – especially our Gen Z fans – turning to cold, flavorful drinks as a go-to treat,' said Alyssa Buetikofer, chief customer experience and marketing officer, McDonald's USA. 'It's a great opportunity for us to meet our US customers' evolving tastes and show up in new moments, like afternoon refreshment or snack breaks.' McDonald's has been working to lure back customers after US sales dropped 3.6 percent in the first quarter. Sales rebounded in the second quarter, helped by extended operating hours and its biggest hiring push since 2020. Starbucks' started selling refresher drinks like the ones McDonald's is rolling out back in 2012 — marketing them as a low-calorie beverage with a natural source of energy. It sells Strawberry Acai Lemonade, Mango Dragonfruit Lemonade, and its limited-time Summer-Berry Lemonade refreshers. Dunkin' joined in 2020 with flavors like Strawberry Dragonfruit and Peach Passion Fruit. The drinks were a hit, prompting the chain to launch limited-time offerings such as Sabrina's Strawberry Daydream Refresher. Taco Bell jumped in last year with its first Live Mas Cafe last year — a drinks-focused concept offering coffees, refreshers and shakes. The chain plans to expand to over 30 locations by year-end. Other chains experimenting with 'dirty sodas' and refreshers include KFC, Burger King, and Chick-fil-A.
Telegraph
3 minutes ago
- Telegraph
Trump calls for Fed board member to quit in fresh attack on central bank
Donald Trump has demanded a Federal Reserve governor resign over fraud allegations in a fresh attack on the independence of America's central bank. On Wednesday, Mr Trump called on Fed member Lisa Cook to quit after claims from Bill Pulte, the federal housing finance agency chief and a key Trump ally, that Ms Cook had committed mortgage fraud. Mr Pulte, a leading critic of the Fed and its chairman Jerome Powell, said he had sent a criminal referral letter to Pam Bondi, the attorney general, demanding an investigation into allegations that Ms Cook falsified documents and claimed two properties as her primary residence. In response, Mr Trump wrote on his social media platform Truth Social: 'Cook must resign, now!!!' Mr Pulte, who is in charge of America's mortgage giants Fannie Mae and Freddie Mac, is a staunch Trump supporter who has become one of Mr Powell's loudest and most aggressive critics. Mr Pulte has written dozens of posts on X criticising Mr Powell's decision to hold interest rates, claiming the Fed's renovation was 'riddled with fraud' and accusing Mr Powell of 'conducting economic warfare against America'. The president's demand is the latest attack on Fed independence after Mr Trump spent months hurling criticism at Mr Powell for keeping interest rates high. The president has repeatedly called Mr Powell a 'numbskull' and 'Mr Too Late' for failing to cut rates and has several times threatened to oust him. Mr Trump's attacks have triggered widespread warnings over the Fed's ability to operate independently from government interference and jitters in the bond market. Ms Cook, who was appointed by former president Joe Biden, has so far voted in line with Mr Powell to keep interest rates on hold at every federal open market committee (FOMC) meeting since December. Her potential departure from the board would open up another opportunity for Mr Trump to appoint an ally who would favour interest rate cuts. Dissent against Mr Powell is rising at the Fed. The last FOMC meeting at the end of July saw two board members – Christopher Waller and Michelle Bowman – vote for an interest rate cut. Both Mr Waller and Ms Bowman are in the running for Mr Trump's pick to replace Mr Powell, whose term as chairman expires in May. This month, Mr Trump nominated Stephen Miran, the chairman of his council of economic advisors, as a temporary board member to replace Adriana Kugler, who announced she was stepping down before her term was due to expire in January. Mr Miran's nomination needs to be approved by the Senate, but it is feasible that he could be in place in time for the Fed's next interest rate decision on Sept 17. Investors are betting that Mr Powell and the rest of the FOMC will favour a September cut after surprisingly bad jobs data suggested that the American economy is weaker than previously thought. Mr Trump and Scott Bessent, the treasury secretary, are in the process of choosing a permanent replacement for Ms Kugler on the board and become Mr Powell's replacement as chairman.
BBC News
3 minutes ago
- BBC News
US chain Target appoints new boss as it seeks to revive sales
US retail giant Target has appointed a new chief executive as it struggles to reverse a decline in sales and its share leadership change comes as rising prices and uncertainty over the knock-on effects of US tariffs have raised concerns over the impact on consumer spending, particularly for Target's discretionary products such as apparel and Fiddelke, the company's chief operating officer, will take over from Brian Cornell in February. Mr Fiddelke has been with the company for 20 in Target dropped nearly 11% before recovering slightly after the announcement. Mr Cornell, who has been boss for 10 years, had been expected to retire. The appointment of Mr Fiddelke marks a return to Target's tradition of hiring a company insider to lead it. Mr Cornell was the first-ever outsider to be made the top Fiddelke said in a statement that the company has "work to do", and needs to move "faster, much faster".He pledged to improve the quality of products on offer and to embed more technology in the is known for its affordable clothes and wide range of cheap groceries, homeware, electronics and it has seen poor sales in the past year amid competition from Amazon and share price dropped considerably at the start of the year and has been stagnant Streeter, head of money and markets, Hargreaves Lansdown, said the appointment of Mr Fiddelke was likely to underwhelm investors."There may have been hopes that a successor from a rival in the market could have brought extra knowledge, insight and energy, valuable assets at a time of intense competition," she Baker, an analyst at DA Davidson, added: "That announcement lacks the pop that a significant external hire would provide."In May, Target slashed its expectations for the year after a sharp fall in sales which it blamed on a "highly challenging environment" amid the introduction of trade sales slumped by 5.7% in the three months to May, at a time when the company also faced a backlash following a previous decision to end diversity, equity and inclusion (DEI) targets.
