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  "docSlug": "137bd4361640",
  "documentTitle": "Dollar Tree, Inc. (DLTR)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-01-07 00:00:00",
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  "slideType": "valuation_reveal",
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  "notes": "The slide uses a 'before-after' comparison of performance metrics followed by a 'valuation bridge' calculation to isolate the value of the underperforming asset.",
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      "kind": "callout",
      "text": "Dollar Tree has failed to execute on the turnaround of Family Dollar and the chain continues to languish, with flat-to-negative same-store sales growth and continued margin compression.",
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      "kind": "chart",
      "text": "YTD 2018 Operating Margin",
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      "kind": "chart",
      "text": "Same Store Sales",
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      "kind": "metric",
      "text": "EV/EBITDA: 2.5x",
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      "kind": "paragraph",
      "text": "Unfortunately, however, that has not been the case. Dollar Tree has failed to execute on the turnaround of Family Dollar and the chain continues to languish, with flat-to-negative same-store sales growth and continued margin compression. In fact, the gap between Family Dollar and Dollar General’s performance continues to only grow larger.",
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      "kind": "paragraph",
      "text": "Family Dollar’s lackluster performance is adversely impacting Dollar Tree’s valuation. Assuming that a standalone Dollar Tree chain would trade at a slight premium to Dollar General’s forward EBITDA multiple (11.2x 2019 EBITDA) given the uniqueness of the chain and the higher margin profile, the implied market valuation for Family Dollar is approximately 2.5x 2019 EBITDA, and may be as low as approximately 1x 2019 EBITDA.",
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      "kind": "paragraph",
      "text": "different product assortment created a more limited opportunity for synergies than would have been expected in a Family Dollar and Dollar General combination. Despite this and the significant price paid, investors were initially hopeful that Dollar Tree’s operational capabilities would allow the Company to execute a turnaround of Family Dollar and create a significantly larger dollar store industry powerhouse.",
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        "x": 0.14,
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      "kind": "source-note",
      "text": "Source: Bloomberg, Capital IQ, Starboard estimates. Market data as January 4, 2019. Based on Dollar Tree stock price of $92.89.",
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      "kind": "source-note",
      "text": "Source: Public company filings. Note: YTD Q3 2015 represents the 39 week period ended May 30, 2015 for Family Dollar and October 30, 2015 for Dollar General.",
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      "kind": "table",
      "text": "Implied Family Dollar Valuation",
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      "evidence": "Comparison of pre-acquisition and post-acquisition performance metrics.",
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