What the Schultz Departure Means for Starbucks
The wide-moat firm has one of the deepest benches in the consumer industry, and we're maintaining our fair value estimate.
Few executives are as closely associated with their brand as Howard Schultz is with
We're not planning any changes to our $68 fair value estimate or our Exemplary stewardship rating. While we recognize investor frustration with U.S. comp trends and still believe they will take time to stabilize, we believe the combination of China's leadership, new channel diversification opportunities, and capital allocation ($20 billion expected to be returned to shareholders between 2018 and 2020) offers several reasons to stay with this name.
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