Independent Research, US Dominant Players, Investment Talk

Investment Talk

Independent Research, US Dominant Players

Investment Talk is for readers who wish to learn about companies that are potentially outside of their own circle of research, as well as those who are longing to become part of a community of like-minded investors and learn more about investment research. I would describe myself as a long-term investor who typically takes a 3Y to 5Y outlook, before reassessing once that period matures. I follow the adage that one should research, reach a conclusion, and then verify and continue to hold so long as the thesis remains intact. My own investing style is one that seeks to find dominant players within their respective market who have shown signs of monopoly or oligopolistic behaviour, unlikely to be disrupted, in tandem with discovering market disruptors who have a high likelihood of disrupting their respective market. Equally (and weighted accordingly) I seek to discover more nuanced, misunderstood, situations with a shorter time frame.

Equity Bottom-Up

<ul>
<li>A quick memo this morning, as I perused the headlines and found that Howard Schultz, founder and two-time CEO of Starbucks, will be coming back to the company</li>
<li>The transition will be effective on April 4th, and Howard is expected to assist with succession planning</li>
<li>I am a big fan of Schultz, having read both ‘Pour Your Heart into It’ and ‘Onward’ in my younger years</li>
</ul>


A quick memo this morning, as I perused the headlines and found that Howard Schultz, founder and two-time CEO of Starbucks, will be coming back to the company
The transition will be effective on April 4th, and Howard is expected to assist with succession planning
I am a big fan of Schultz, having read both ‘Pour Your Heart into It’ and ‘Onward’ in my younger years


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>Starbucks' financial performance in the lattter half of 2021 continued to be strong despite the headwinds associated with the highly transmissible omicron variant.</li><li>The company reported a global revenue of $8.1 billion in the first quarter, up 19% from the prior year mainly driven by exceptional holiday performance in the United States, as well as strong results from its global portfolio.</li><li>Based on our credit analysis, the company merits a Credit Evaluation Score of A with a stable outlook and as per our Financial Strength Indicator, its performance is 4.14/ 5.</li></ul>

Starbucks' financial performance in the lattter half of 2021 continued to be strong despite the headwinds associated with the highly transmissible omicron variant.The company reported a global revenue of $8.1 billion in the first quarter, up 19% from the prior year mainly driven by exceptional holiday performance in the United States, as well as strong results from its global portfolio.Based on our credit analysis, the company merits a Credit Evaluation Score of A with a stable outlook and as per our Financial Strength Indicator, its performance is 4.14/ 5.

Starbucks Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>Despite intermittent Covid-19 headwinds, which accelerated in the past quarter due to the highly transmissible omicron variant, Starbucks' financial performance demonstrated the strength of their brand, as evidenced by strong customer demand.</li><li>The company might witness a near-term correction on account of the Ukraine-related geopolitical tensions but is fundamentally solid.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Despite intermittent Covid-19 headwinds, which accelerated in the past quarter due to the highly transmissible omicron variant, Starbucks' financial performance demonstrated the strength of their brand, as evidenced by strong customer demand.The company might witness a near-term correction on account of the Ukraine-related geopolitical tensions but is fundamentally solid.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Starbucks Corporation: Financial & Price Forecasts

<ul><li>As it turns out, management now expects the return to LT EBIT margins to be extended out to 2024</li><li>Whilst revenue guidance ($32.5B to $33B) for 2022 has been reaffirmed, both EPS and EBIT expectations were tapered with an expected 200bps of incremental pressure headed their way</li><li>As such, we can expect EBIT to reach 16.5% in 2022 (a slight improvement on 2021), before expanding across both 2023/2024.</li></ul>

As it turns out, management now expects the return to LT EBIT margins to be extended out to 2024Whilst revenue guidance ($32.5B to $33B) for 2022 has been reaffirmed, both EPS and EBIT expectations were tapered with an expected 200bps of incremental pressure headed their wayAs such, we can expect EBIT to reach 16.5% in 2022 (a slight improvement on 2021), before expanding across both 2023/2024.

Equity Capital Markets

<ul><li>Starbucks has witnessed a strong correction off-late after the increasing spread of the Omicron variant and the increasing stringency of rules in its key markets, especially China.</li><li>The company reported a strong fourth-quarter result with revenue increasing by 22% and a staggering 168& increase in earnings per share.</li><li>The company’s reflective pricing actions could help accelerate comps growth as the management works to offset the effects of inflation throughout their supply chain.</li></ul>

Starbucks has witnessed a strong correction off-late after the increasing spread of the Omicron variant and the increasing stringency of rules in its key markets, especially China.The company reported a strong fourth-quarter result with revenue increasing by 22% and a staggering 168& increase in earnings per share.The company’s reflective pricing actions could help accelerate comps growth as the management works to offset the effects of inflation throughout their supply chain.

Starbucks Corporation: The Omicron Uncertainty Could Be A Cause Of Concern (12/2021)

United States

Starbucks Corporation retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through its sales group, direct response business, supermarkets, and on the World Wide Web. Starbucks also produces and sells bottled coffee drinks and a line of ice creams.

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Starbucks Corp (SBUX US)

SBUX: Howard Schultz is BACK

A quick memo this morning, as I perused the headlines and found that Howard Schultz, founder and two-time CEO of Starbucks, will be coming back to...

Investment Talk

Starbucks Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Starbucks' financial performance in the lattter half of 2021 continued to be strong despite the headwinds associated with the highly transmissible...

Baptista Research

Starbucks Corporation: Financial & Price Forecasts

Despite intermittent Covid-19 headwinds, which accelerated in the past quarter due to the highly transmissible omicron variant, Starbucks'...

Baptista Research

SBUX: Union, What Union?

As it turns out, management now expects the return to LT EBIT margins to be extended out to 2024. Whilst revenue guidance ($32.5B to $33B) for 2022...

Investment Talk

Starbucks Corporation: The Omicron Uncertainty Could Be A Cause Of Concern (12/2021)

Starbucks has witnessed a strong correction off-late after the increasing spread of the Omicron variant and the increasing stringency of rules in...

Baptista Research

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