2 Turnarounds In Specialty Retail Trying To Follow Starbucks' And McDonald's Lead - Part 1
By Yale Bock:The holy grail of investing is the 10-, 20-, or 100-bagger, the phrase coined by legendary Fidelity portfolio manager Peter Lynch, to describe making 1,000% or more on an investment. Turnaround investments can also be very lucrative, as evidenced by the recovery of McDonald's (MCD) and Starbucks (SBUX) stock prices over the last decade.Having been fortunate enough to invest in SBUX when its share price was beaten down, I am always on the lookout for turnaround candidates in specialty retail. Admittedly, Build-A-Bear Workshop (BBW), and Crumbs Bake Shop (CRMB), which will be discussed in part 2 of the article, are structurally not as attractive as SBUX. Neither has the scale of Starbucks, or as high profile a brand. Also, retail is not an area which I typically like to invest in because of thin operating margins. That sentiment is shared by many institutional investors as well.In addition, anyComplete Story »
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