Dave Sather of Sather Financial Group presented his in-depth investment thesis on Starbucks (NYSE: SBUX) at Wide-Moat Investing Summit 2018.
Starbucks is the premier roaster of specialty coffee with a brand name valued at $17 billion by Forbes, trading at fair value. For a variety of reasons, such as negative press attention, lower comparable store sales growth, and desertion by growth investors, Starbucks trades at the lowest point in three years. Management has raised its target for cash returned to shareholders to $25 billion through FY20, including a 20% dividend increase.
Trading at a market multiple, most investors are overly concerned with slowing U.S. growth. In reality, it is an international growth opportunity harnessing digital relationships via data analytics. SBUX is fairly priced based on conservative estimates. If anything goes right, the upside should accrue to the patient investor.
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About the instructor:
Dave Sather is a CFP and President of Sather Financial Group, a $600 million firm managing individual accounts, in Victoria, Texas. Dave has degrees in business from Texas Lutheran University and Texas A&M University. Dave is also a Director of Business Bank Of Texas and serves on the Investment Committee and Board of Regents at Texas Lutheran University. He developed and teaches the Bulldog Investment Company internship at Texas Lutheran University (www.BulldogInvestmentCo.com).