CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Dollar Tree (DLTR) pushes back against activist investor

By Daniel Tyson

18:13, 13 December 2021

Dollar Tree store view from the parking lot
Dollar Tree said its current directors have the experience to steer the company - Photo:

Dollar Tree accused activist investor Mantle Ridge Sunday of lacking ideas, seeking to oust its board and failing to respond to its questions as the retailer fends off what it believes is an attempted takeover.

Dollar Tree was trading slightly down at around $140 as of 12:30 EST (UTC-5) Monday. The 52-week high was on 24 November 2021 at $149.37, while the low was on 24 September at $84.26.

Dollar Tree said its current directors have the necessary experience to steer the company, while the Mantle Ridge “hand-picked nominees are drawn from boards of companies at which Mantle Ridge is highly influential, if not in total control, hardly a model of good corporate governance”. 

Dollar Tree’s board described Mantle Ridge’s behaviour as “disappointing” and “unwarrantedly aggressive and hostile (in) manner”.

Unfortunately, this is a wait and see scenario for investors, said Zain Akbari, an equity analyst for Morningstar, in an interview with, adding it is unclear exactly what Mantle Ridge wants from Dollar Tree. 

Officials meet

On 2 December, Dollar Tree officials met with a Mantle Ridge representative and three advisers to discuss ideas. Dollar Tree said it was told it should name Richard Dreiling, former CEO of Dollar General, as the new executive chair of Dollar Tree.

“Mantle Ridge simply expressed that it wanted a majority of the board to be replaced, Dreiling to be named executive chair and other control rights. Taken together, in the view of the board, these demands amounted to handing control of the company” to Mantle Ridge CEO Paul Hilal, Dollar Tree claimed.

Hilal wanted to replace all 11 members of the current Dollar Tree board, Dollar Tree said, but the company instead offered to appoint Dreiling to the board. The company said Mantle Ridge did not respond until it nominated 11 directors to replace the current board last week.

“The only operational suggestion made – that the company should sell Dollar Tree merchandise at Family Dollar stores – is something Dollar Tree has already been doing for several years,” said Dollar Tree, which is the parent company of Family Dollar. 

What is your sentiment on DLTR?

Vote to see Traders sentiment!

Mantle Ridge comments

Mantle Ridge did not return an email or a call from on Monday. On its website, the investment firm said it seeks to help create real value and “believes that constructive and cooperative engagement between boards, management teams and engaged shareholders is the best means to that end”. 


1,996.33 Price
-0.350% 1D Chg, %
Long position overnight fee -0.0199%
Short position overnight fee 0.0117%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

71.67 Price
+0.220% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


42,277.55 Price
-3.840% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


16,052.40 Price
-0.090% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

Mantle Ridge, which owns a 5.7% stake in Dollar Tree, filed paperwork with the US Securities and Exchange Commission late Friday seeking to replace all 11 directors and to secure a leadership role for Dreiling. 

According to the filing, Mantle Ridge leaders “believe the board should undertake a thoughtful and deliberative review of the company’s strategy, with a view to, among other things, fully develop the combined value of its two primary segments

Mantle Ridge stated in its filing that talks are ongoing.

For its part, Dollar Tree stated that a proxy fight would be “highly disruptive, expensive and likely damaging to the company at a time when our initiatives are taking hold and our performance is trending well. We would very much like to avoid that damage and are sure that as a major shareholder (Mantle Ridge) would too, especially since we all seem to agree on the continued rollout of the multi-price point model and continuing to drive synergies with Family Dollar”.

Changes ahead

Dollar Tree stock has increased 31% in the last six weeks. 

As the company’s name suggests, Dollar Tree created everything in the store as a $1 concept. During a November earnings conference call, the company officially announced the standard price point will jump to $1.25 by early 2022. The company cited myriad factors, from increased freight cost to higher wages, as reasons for the price increase.

Neither its customers nor Wall Street had a negative reaction to the news. In fact, the stock climbed 16% following the announcement.

Raising some prices by a quarter “was not a decision the company took lightly, and required careful planning, including to ensure that it continues to provide a meaningful assortment with extreme value to its customers,” the company said. 

Read more: Dollar Tree (DLTR) stock up on activist's billion-dollar bet

Markets in this article

Dollar Tree
124.50 USD
-2.37 -1.870%
Dollar Tree
124.50 USD
-2.37 -1.870%
Dollar Tree
124.50 USD
-2.37 -1.870%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading