>> Bill Ackman thinks Starbucks can double in the next year or so. I'm Rob Cox of Reuters Breaking Views.
ll Ackman has come out with his big new idea at the Grant's Investment Conference. He said that Starbucks shares now at about 55 bucks could double, doppio as he says, double in Italian obviously, over the next year or so.
He thinks the company can sort out some of its problems. Those principally are that it's got sort of sagging same store sales in the United States. He thinks they've got the management, and the plan and strategy to fix. He also thinks that they're gonna be fine In China.
China's their big second market, a lot of questions about whether or not the government's gonna give them any trouble. Bill Ackman's view is that the company is well protected. Pershing Square, which is the hedge fund that Bill Ackman owns and runs, bought 15 million shares. He said they bought them for about 51 bucks, so he's already up.
I think the stock popped around 2 or 3% on the news. He thinks that they can double. The reason is basically simple. He thinks that Starbucks is this iconic brand. He thinks its done very well at expanding on the west coast, in big cities, on the east. He put up this big map of the United States that basically showed a giant amount of white space everywhere between from Seattle, Los Angeles, and New York.
Everything in there is a huge opportunity for Starbucks. A lot of investors will follow Bill Ackman, just like they do other big investors. Wouldn't surprise me if it certainly forces a lot of them to double down and reconsider some of their investments, and to reconsider Starbucks, which has really been a pretty unloved stock for the past year or so.