The final addition is Starbucks (NASDAQ:SBUX), the largest coffee chain in the world. We believe Starbucks has a long runway for growth, as the company is expanding internationally, penetrating the consumer packaged goods (CPG) market, and launching new food and drink initiatives. At the time of our purchase, the stock was trading at a discount to its historical valuation because earnings growth has slowed. We believe, however, that Starbucks’ robust loyalty program and long-standing focus on innovation will help accelerate growth and lead to strong shareholder returns in the future.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund third quarter 2017 commentary.
