Polen Capital: “Starbucks (SBUX) is Experiencing Cost Pressures From Wages & Input Costs”

Polen Capital, an investment management firm, published its “Polen Global Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter of 2022, the Global Growth Composite Portfolio (the “Portfolio”) was down -18.08% and -18.34% gross and net of fees, respectively, versus a decline of -15.65% for the MSCI ACWI (the “Index”). Since inception, the Portfolio has compounded at an annualized rate of 11.04% and 10.12%, gross and net of fees, versus 6.88% for the Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Polen Global Growth mentioned Starbucks Corporation (NASDAQ:SBUX) and explained its insights for the company. Founded in 1971, Starbucks Corporation (NASDAQ:SBUX) is a Seattle, Washington-based coffeehouse company with a $102.5 billion market capitalization. Starbucks Corporation (NASDAQ:SBUX) delivered a -23.61% return since the beginning of the year, while its 12-month returns are down by -20.37%. The stock closed at $89.35 per share on October 06, 2022.

Here is what Polen Global Growth has to say about Starbucks Corporation (NASDAQ:SBUX) in its Q2 2022 investor letter:

“Starbucks, which garners a lower weighting in the Portfolio, had slightly better than average three-month performance. Samestore sales were up double-digits in the U.S. and International exChina, with solid revenue growth across those regions. The company is experiencing cost pressures from wages and input costs though, and China same-store sales were down 23% due to zero-COVID policy restrictions and lockdowns.”

Photo by TR on Unsplash

Our calculations show that Starbucks Corporation (NASDAQ:SBUX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Starbucks Corporation (NASDAQ:SBUX) was in 55 hedge fund portfolios at the end of the second quarter of 2022, compared to 58 funds in the previous quarter. Starbucks Corporation (NASDAQ:SBUX) delivered a 12.76% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on Starbucks Corporation (NASDAQ:SBUX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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Disclosure: None. This article is originally published at Insider Monkey.