1. Grant Olcott & Grant Gutstein
Consumers SIC Update
Grant Olcott & Grant Gutstein

2. Sector performance (1Yr)
Holdings (to date)
Company
Date
Return
DPZ
3/21/16
32.41%
STZ
4/18/17
66.77% MB
3/19/18
-9.35%
Sector performance (1Yr)
Consumer Staples
-6.14%
Retail
4.81%

3. Dominos Pizza Bullish outlook Analyst estimate: 20% upside
Raising dividend
Digital initiatives and franchising
Reducing ownership of retail locations
Order pizza through Amazon Alexa, Apple Watch, etc.
Invested $90mill in Pulse, point of sales platform

4. Constellation Brands Sales rose, beat analyst estimates Activities
Maker of Corona, Modelo, Robert Mondavi wines and Svedka vodka saw sales rise 8.5 percent to $1.77 billion. Analysts on average expected $1.75 billion.
Beer sales full-year growth at 10%. Modelo and Corona franchises grew 18% and 6%, respectively. Operating margin steady at 38% as increased marketing spending offset rising average prices.
Wine and spirits division grew 4% (Meiomi, Black Box, and Ruffino wine brands). Operating margin up 0.8 percentage points to 27.4% of sales.
Project operating cash flow to increase by $500M
Activities
Raised quarterly dividends by 42 percent.
4.8M share buyback (¾ in last quarter) for $1.04B
5+ acquisitions FY17 (trend likely to continue)
Diversification (Kennedy Growth - largest publicly traded cannabis supplier in the world

5. Conclusion & Actions Maintain positions
Look for attractively valued consumer staples companies (P/E in parentheses)
Starbucks (17.9)
Jack in the Box (17.5)