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Tom
Mor
risPe
rcep
tion
vs. r
ealit
y
‘the
larg
est a
udie
nce
to e
ver w
itnes
s an
inau
gura
tion’
Sean
Spi
cer,
Whi
te H
ouse
Pre
ss S
ecre
tary
Man
agem
ent s
pin
vs re
ality
Micr
obre
wer
ies i
n th
e US
Sour
ce: G
loba
lDat
a Co
nsum
er
9% p
a
30%
pa
ABI -
shar
e pr
ice $
Sour
ce: B
loom
berg
x7
ABI
Sour
ce: A
BI c
ompa
ny p
rese
ntat
ion
Man
agem
ent s
pin
vs. r
ealit
y
‘Our
bus
ines
s has
nev
er b
een
stro
nger
or m
ore
robu
st’
Kevi
n Jo
hnso
n, C
EO, J
uly
2017
Star
buck
s -sh
are
price
$
Sour
ce: B
loom
berg
x14
Star
buck
s
'The
trus
t and
conf
iden
ce o
ur
cust
omer
s hav
e in
the
Star
buck
s br
and
is pr
opel
ling
our b
usin
ess
forw
ard
in m
arke
ts a
nd ch
anne
ls ar
ound
the
wor
ld a
s nev
er b
efor
e.’
How
ard
Schu
ltz, C
hairm
anNo
v 20
16
Chin
a As
iaPa
c com
para
ble
sale
s gro
wth
%
Sour
ce: S
tarb
ucks
com
pany
pre
sent
atio
n
Star
buck
s
‘The
re's
no e
vide
nce
wha
tsoe
ver t
hat w
e ha
ve, t
hat
ther
e is
anyt
hing
that
they
[com
petit
ors]
are
doi
ng
that
is a
ffect
ing
us a
dver
sely
. So
I jus
t wan
t to
get
that
off
the
tabl
e. T
he c
ompe
titiv
e iss
ues
ques
tion
is ju
st a
non
even
t for
us’
Chai
rman
How
ard
Schu
ltz, A
pril
2017
Stor
e sa
les
Qua
rter
end
ed A
pr 1
, 201
8
Com
para
ble
stor
e sa
les
Chan
ge in
tran
sact
ions
Cons
olid
ated
-1%
Amer
icas
0%
Chin
a As
iaPa
c0%
EMEA
-4%
Sour
ce: S
tarb
ucks
com
pany
web
site
Man
agem
ent S
trat
egy
vs R
ealit
y
‘The
Net
flix
deal
is g
ood
new
s fo
r maj
or fi
lm st
udio
s’W
SJ in
Dec
201
2
‘In a
dditi
on to
that
, you
hav
e th
e gr
owth
of p
latfo
rms l
ike
Netfl
ix o
r SVO
D. T
hat's
in
tere
stin
g as
wel
l. Be
caus
e w
hile
one
coul
d ar
gue
that
for a
ll th
e rig
ht re
ason
s tha
t's
star
ting
to in
cent
ivize
or m
aybe
ince
ntiv
izing
peo
ple
inclu
ding
Mill
enni
als t
o co
rd cu
t, it'
s also
pro
vidi
ng u
s opp
ortu
nitie
s bec
ause
Net
flix
has b
ecom
e a
real
ly im
port
ant
part
ner t
o us
in b
uyin
g ou
r off-
netw
ork
prod
uct,
buyi
ng o
rigin
al p
rogr
amm
ing
for u
s –th
e M
arve
l dea
l is a
goo
d ex
ampl
e –
and
then
our
film
libr
ary
kick
s in,
the
outp
ut d
eal
for t
he 2
016
slate
kick
s in.
So
we
look
at N
etfli
x ac
tual
ly ri
ght n
ow a
s mor
e fri
end
than
fo
e be
caus
e th
ey'v
e be
com
e an
agg
ress
ive
cust
omer
of o
urs.
I also
thin
k th
at p
rodu
cts
like
Netfl
ix a
re p
rett
y at
trac
tive
beca
use
they
offe
r a v
ery
user
-frie
ndly
, effi
cient
, and
of
tent
imes
muc
h le
ss e
xpen
sive
way
for p
eopl
e to
wat
ch te
levi
sion.
We'
ve b
een
amon
g th
e fir
st, i
f not
the
first
, to
offe
r our
pro
duct
on
new
pla
tform
s eve
n if
it's s
omew
hat
disr
uptiv
e’Di
sney
CEO
, Aug
ust 2
015
‘It's
been
clea
r to
us fo
r a w
hile
with
th
e fu
ture
of t
his i
ndus
try
will
be
forg
ed b
y di
rect
rela
tions
hips
bet
wee
n co
nten
t cre
ator
s and
cons
umer
s…W
ith th
is st
rate
gic s
hift,
we'
ll en
d ou
r di
strib
utio
n ag
reem
ent w
ith N
etfli
x’.
Disn
ey C
EO, A
ugus
t 201
7
Inve
stor
per
cept
ion
vs. r
ealit
y
A gr
eat b
usin
ess o
n su
rface
Sour
ce: C
apita
Ann
ual R
epor
t
ROIC
Cost
of C
apita
l
‘(The
retu
rn is
cal
cula
ted
base
d on
und
erly
ing
prof
it fig
ures
whi
ch) e
xclu
des
non-
unde
rlyin
g ite
ms
deta
iled
in n
ote
4 bu
sines
s ex
it, n
ote
5 ad
min
istra
tive
expe
nses
and
not
e 9
net f
inan
ce
cost
s, in
the
note
s to
the
finan
cial
acc
ount
s.’
Sour
ce: C
apita
Ann
ual R
epor
t
Man
agem
ent a
djus
ted
prof
it to
ap
pear
10x
hig
her! 20
1620
15
Mgm
t Pr
esen
tatio
n£m
Repo
rted £m
Mgm
t Pr
esen
tatio n£m
Repo
rted £m
Net
Pro
fit
376.7
36.9
468.
452
.7
Sour
ce: C
apita
Ann
ual R
epor
t
No re
al ca
sh g
ener
atio
n
Cash
ge
nera
ted
by b
usin
ess
Cash
use
d fo
r M&
A
Sour
ce: C
apita
Ann
ual R
epor
t
Payi
ng d
ivid
end
from
the
bala
nce
shee
t £m
Sour
ce: C
apita
Ann
ual R
epor
t
Repo
rted
ne
t deb
t
Actu
al n
et d
ebt
Leas
e ad
just
ed
net d
ebt
Shar
es ra
llied
unt
il re
ality
bite
s
-70%
Sour
ce: B
loom
berg
Pres
s per
cept
ion
vs. r
ealit
y
Oil p
rice
$
Sour
ce: B
loom
berg
, FT
22 M
ar 2
016
“Low
er fo
r lon
ger”
FT
Oil p
rice
$
Sour
ce: B
loom
berg
+70%
Sell-
side
perc
eptio
n vs
. rea
lity
Angl
o Am
erica
n sh
are
price
-93%
Sour
ce: B
loom
berg
Angl
o Am
erica
n
Sour
ce: S
ell-s
ide
rese
arch
Angl
o Am
erica
n sh
are
price
x6
Sour
ce: B
loom
berg
