I like coffee. And it seems that a lot of people like coffee too. Pershing Square thinks Starbucks is one of the world’s best businesses and that it’s undervalued. Here’s their analysis.

Key takeaways are:

Dominant brand in a growing category
Exceptional returns on each new store built (1$ —> 10$)
Huge margins for new stores (30%) – no kitchen needed, lucky them!
Mobile order is actually a big thing for them – not just a gimmick
China loves Starbucks – they’ve been there for 20 years