Starbucks SBUX
The three reasons
- 1
Dominant global coffee brand trading at 22x forward P/E vs. 26x historical average
- 2
China is single-largest unit growth opportunity, can ultimately exceed U.S. footprint
- 3
$14bn buyback plan plus mid-teens EPS growth implies shares can more than double
Primary demands
- Continue accelerated ~$14bn share repurchase program (~18% of market cap over two years)
- Execute remedial actions to reinvigorate U.S. same-store-sales growth
- Accelerate China unit growth (toward 6,000 stores by 2022 and ultimately surpassing the U.S.)
- Maintain focus on core coffee business (following Nestle CPG divestiture and Teavana closure)
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (8)
Notes
Code-named 'Doppio' on cover — Pershing Square's internal nickname for the SBUX investment. Presented at Grant's Interest Rate Observer Fall 2018 conference. This is an atypical Pershing deck: a friendly long thesis rather than an adversarial activist campaign. PS already owned 15.2M shares at ~$51 avg cost and is broadly supportive of CEO Kevin Johnson's actions (portfolio restructuring, $19bn buyback, Nestle CPG sale). No board demands, no management criticism — classic Sohn/idea-conference format. Before/after framing appears in 'Previous vs. Revised' long-term-target table (p.30) and implied in historical vs. current P/E comparison. No sum-of-parts because valuation is single-multiple P/E-based. Closing thesis (p.43) uses a stacked-color-block summary visual similar to Ackman's other pitch decks.