Bill Ackman Reveals $900 Million Investment in Starbucks (SBUX)
The announcement came during on Tuesday at a conference in New York, where Ackman revealed that the fund has acquired 15.2 million shares. There is no indication that Ackman will take an activist investor role, as he is often known to do, but his investment does come at a time where Starbucks is facing saturation in the United States and a need for expansion into the Chinese market.
“Many Chinese go to Starbucks as the ‘third place’ to hang out,” Ackman said, adding that he sees a “big runway” for Starbucks in China.
Ackman’s previous investments in the food and beverage space include Chipotle Mexican Grill (CMG), Mondelez (MDLZ) and Restaurant Brands International (QSR), which is the parent of Burger King and Tim Horton’s.
In a statement, a Starbucks spokesperson said, “We view the active, engaged dialogue that we have with shareholders as critical input into our strategic approach and we value constructive feedback on delivering long-term shareholder value. We look forward to maintaining a productive dialogue with Mr. Ackman as we do with all of our shareholders.”
As a result of the news, the price of SBUX has jumped over 3.5% and is trading roughly flat YTD. Pershing Square Holdings returned 15.8% through the end of the third quarter.