Top 5 Stock Picks of Steve Leonard’s Pacifica Capital Investments

3. Starbucks Corporation (NASDAQ:SBUX)

Pacifica Capital Investments’ Stake Value: $44,643,000

Percentage of Pacifica Capital Investments’ 13F Portfolio: 14.42%

Number of Hedge Fund Holders: 58

Starbucks Corporation (NASDAQ:SBUX), the largest American coffeehouse chain, posted a Q3 EPS of $1.00 on October 28, in line with analysts’ consensus estimates. The $8.15 billion revenue for the third quarter missed estimates by -$77.46 million. 

Steve Leonard’s Pacifica Capital Investments owns 404,709 shares in Starbucks Corporation (NASDAQ:SBUX) as of September this year, worth $44.6 million, representing 14.42% of the firm’s total investments. 

As of Q3 2021, 58 hedge funds tracked by Insider Monkey were bullish on Starbucks Corporation (NASDAQ:SBUX), down from 63 in the preceding quarter, with a total stake value of $4.8 billion. Terry Smith’s Fundsmith LLP is the leading Starbucks Corporation (NASDAQ:SBUX) stakeholder, with a $1.18 billion stake in the company. 

Argus analyst John Staszak on November 4 downgraded Starbucks Corporation (NASDAQ:SBUX) to Hold from Buy, citing rising labor costs, supply chain challenges, and increased competition.

Here is what Polen Capital has to say about Starbucks Corporation (NASDAQ:SBUX) in its Q2 2021 investor letter:

“For Starbucks, we believe the underlying businesses for the company remain strong. Starbucks has grappled with the impact of the pandemic, but results have continued to show an ongoing post-pandemic recovery.”