Starbucks' (SBUX, Financial) sales trends improved substantially relative to the second calendar quarter, led by markets that were further along the post-COVID-19 reopening path, particularly mainland China. While the Company has experienced a challenging year due to the effects of the pandemic, Starbucks has quickly adapted and made investments that should move it into a better competitive position as society returns to normal. For example, it has ramped up opening more stores with drive-through and pick-up capabilities, in addition to continued digital and loyalty program expansions. We also think the Company has the opportunity to drive higher margins over the next several years as the growth rate of its store base inevitably matures.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds fourth-quarter 2020 shareholder letter.
