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>Starbucks continues to demonstrate a robust recovery in its domestic territory, with International (Ex-China) playing catch up.</li><li>The focal point of Q2 earnings, however, was the temporal deterioration of the China business.</li><li>Plagued so badly by zero-covid policy closures, the contagion from the China arm of the business resulted in <strong>Starbucks withdrawing guidance for the remainder of the year.</strong></li></ul>

Starbucks continues to demonstrate a robust recovery in its domestic territory, with International (Ex-China) playing catch up.The focal point of Q2 earnings, however, was the temporal deterioration of the China business.Plagued so badly by zero-covid policy closures, the contagion from the China arm of the business resulted in Starbucks withdrawing guidance for the remainder of the year.

<ul><li>This morning I had two of my larger holdings, Starbucks and Twitter, become embroiled in headlines. It was announced this morning that Twitter has a new shareholder, Elon Musk</li><li>And Starbucks would be axing their $20B buyback program as Howard Schultz looks to make a stamp on his welcoming party.</li><li>Shares of Twitter were trading as high as +26% in the early pre-market hours this morning, after an SEC filing from Twitter shows that Elon Musk, founder and current CEO of Tesla has acquired a "passive" but sizeable 9.2% ownership stake of Twitter (~73.5M shares).</li></ul>

This morning I had two of my larger holdings, Starbucks and Twitter, become embroiled in headlines. It was announced this morning that Twitter has a new shareholder, Elon MuskAnd Starbucks would be axing their $20B buyback program as Howard Schultz looks to make a stamp on his welcoming party.Shares of Twitter were trading as high as +26% in the early pre-market hours this morning, after an SEC filing from Twitter shows that Elon Musk, founder and current CEO of Tesla has acquired a "passive" but sizeable 9.2% ownership stake of Twitter (~73.5M shares).

Elon Buys 9.2% of Twitter, and Starbucks Suspend $20B Buyback Program

<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

United States

Las Vegas Sands Corp. owns and operates casino resorts and convention centers. The Company operates in the United States, Macau and Singapore. Las Vegas Sand Corp's casinos offer a wide range of gaming activities and entertainment as well as overnight accommodations, while its expo centers host a wide range of entertainment shows, expositions, and other activities.

Yum! Brands, Inc, owns and franchises quick-service restaurants worldwide.  The Company develops, operates, franchises and licenses a worldwide system of restaurants which prepare, package and sell a menu of food items.

Royal Caribbean Cruises Ltd. is a global cruise company operating a fleet of vessels in the cruise vacation industry. The Company operates through brands which primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.

Hyatt Hotels Corp. is a global hospitality company. The Company manages, franchises, owns, and develops branded hotels, resorts and residential and vacation ownership properties around the world.

Chipotle Mexican Grill, Inc. owns and operates quick serve Mexican restaurants. The Company manages restaurants throughout the United States.

Marriott International Inc. is a worldwide operator and franchisor of hotels. The Company franchises lodging facilities and vacation timesharing resorts under various brand names. Marriott also provides services to home and condominium owner associations for projects associated with several of its brands.

Wingstop Inc. owns and operates restaurants. The Company specializes in cooked-to-order, hand-sauced, and tossed chicken wings. Wingstop serves customers worldwide.

Domino's Pizza, Inc. operates a network of Company-owned and franchise Domino's Pizza stores, located throughout the United States and in other countries.  The Company also operates regional dough manufacturing and distribution centers in the contiguous United States and outside the United States.

Carnival Corporation owns and operates cruise ships offering cruises to all major vacation destinations including North America, the United Kingdom, Germany, Southern  Europe, South America and Asia/Pacific. The Company, through a subsidiary also owns and operates hotels and lodges.  Dually-listed company with CCL LN.

Hilton Worldwide Holdings Inc. operates as a holding company. The Company, through its subsidiaries, provides hospitality services. Hilton Worldwide Holdings owns and manages hotels, resorts, and time share properties worldwide.

Sands China Ltd. develops, owns, and operates integrated resorts, retail malls, and casinos. The Company also manages convention and exhibition halls in Macau.

Galaxy Entertainment Group Limited, through its subsidiary, operates casino, hotel and other entertainment facilities in Macau. The company also manufactures sells and distributes construction materials.

Aristocrat Leisure Limited manufactures and sells gaming machines in Australia and internationally.  The Company also supplies gaming systems, software, table gaming equipment and other gaming related products and services to casinos, clubs and hotels.

China Tourism Group Duty Free Corporation Limited engages in sales of duty free goods and tax goods. The Company sells tobacco, wine and spirits, perfume, cosmetics, fashion and accessories, watches, jewelry, food, luggage products,and other products. China Tourism Group Duty Free also engages in investment and development of tourism destination commercial complexes.

China Tourism Group Duty Free Corp Ltd (601888 CH)

ORIENTAL LAND CO., LTD. operates Tokyo Disney Resort.  The Company also operates restaurants within the complex and sells Disney merchandise.

Sodexo SA designs, manages and delivers comprehensive on-site service solutions for its clients.  The Company offers food, construction management, reception, technical maintenance and housekeeping services; maintains scanners and laboratory equipment; and operates river and harbor cruises and correctional facilities.  Sodexo also designs employee benefit and incentive programs.

InterContinental Hotels Group PLC owns and operates a portfolio of hotel businesses. The Company manages hotel loyalty and priority club rewards programs. InterContinental Hotels Group serves customers worldwide.

Evolution AB operates as a gaming company. The Company develops, produces, markets and licenses fully integrated B2B live casino solutions to online casino operators. Evolution serves customers worldwide.

Flutter Entertainment Public Limited Company provides mobile and online gambling services.

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: "We're Playing the Long Game"

Starbucks continues to demonstrate a robust recovery in its domestic territory, with International (Ex-China) playing catch up.

Investment Talk

Elon Buys 9.2% of Twitter, and Starbucks Suspend $20B Buyback Program

This morning I had two of my larger holdings, Starbucks and Twitter, become embroiled in headlines. It was announced this morning that Twitter has...

Investment Talk

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

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