Pershing Square Activist Presentation Deck
Exceptional Returns on New Unit Capex
We estimate that every dollar Starbucks spends building a new store in the
U.S. or China is worth $10 to $15 shortly after the store opens
Illustrative Value of Each New Store at SBUX Base Case Valuation Multiple ($¹000s)
U.S.
China
10.9x Return
$680
Store Build
Cost
$480
Run-Rate
EBIT DA
$7,440
Value of
Store at
15.5x
EBITDA
15.5x Return
$300
Store Build
Cost
$300
Run-Rate
EBITDA
$4,650
Value of
Store at
15.5x
EBITDA
Source: Store build costs as per prior page. Run-rate EBITDA for the U.S. store calculated as run-rate AUV of $1.6mm as per December 2016 investor day times a 30% assumed
run-rate EBITDA margin. Run-rate EBITDA for the China store calculated as run-rate AUV of $0.8mm as per May 2018 China investor day times a 37.5% assumed run-rate EBITDA
margin. SBUX base case valuation multiple of 15.5x EBITDA is as per Pershing Square assumptions.
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