Pershing Square Capital Management LP, the hedge fund led by activist investor William Ackman, sent shares of Starbucks Corp (NASDAQ:SBUX) higher after revealing its position in the company.
Ackman revealed the fund has 15.2 million shares, or around $900 million worth, of the coffee giant during a presentation at Grant’s Interest Rate Observer fall conference in New York, as per a CNBC report.
READ: Starbucks to triple its annual store closures and scale back growth
"If [same-store sales] and valuation revert closer to historical average levels, we believe that SBUX shares can more than double over the next three years," said Ackman’s in a presentation. He also referred to the Seattle-based chain as a "rare opportunity to own one of the world's best businesses at a discount."
Starbucks responded to the disclosure, saying: "We view 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."
Ackman said in August that the fund had a position in a then-unidentified company.
The presentation stated the average cost for Starbucks was $51 per share. Shares were trading at $57.81 in Tuesday afternoon trading.
The fund also recently disclosed stakes in aerospace company United Technologies Corporation (NYSE:UTX) and home improvement chain Lowe's Companies Inc (NYSE:LOW).
Contact Lenore Fedow at lenore@proactiveinvestors.com
Follow her on Twitter: @LenoreMariee