SBUX: Musings on 2021
(Starbucks Q4 2021 Earnings Review)
In September I shared a memo outlining my long-term thesis for Starbucks as a stalwart in the portfolio and my reasoning for trimming the position down 200bps to a more comfortable level. Nothing has wavered my conviction from that memo.
Like most companies in this industry, Starbucks has been a recovery story. Whilst there are pockets of their operations (China, Asia, Europe) that are recovering slower than their domestic operations, the overall recovery has been pleasing.
Today’s memo will focus on four key areas: (1) The Consolidated Business; (2) The Chinese business; (3) The Rewards Program; and (4) Liquidity and Cash Flow. For additional company-related commentary, please review my previous Starbucks memos (Portfolio Update 09/16/2021, Q3 Review: Starbucks Step Out of Recovery).
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