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  "documentTitle": "Dollar Tree, Inc. (DLTR)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
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  "presentationDate": "2019-01-07 00:00:00",
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  "notes": "The slide uses a comparative analysis of Dollarama's historical performance to justify a valuation upside for Dollar Tree.",
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      "text": "If Dollar Tree were to achieve financial results similar to Dollarama, significant upside exists in the stock.",
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      "text": "Gross Margin and Operating Margin comparison between Dollar Tree and Dollarama",
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      "text": "Operating Margin: $120 per share",
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      "text": "Since first adding new price points in 2009, Dollarama has continued to introduce additional price points and now offers items at price points up to $4.00. Over the past ten years, average same store sales have increased from ~2% per year (prior to 2009) to ~6%, gross margins have increased from ~33% to ~40%, and EBITDA margins increased from ~14% to ~25%, far outpacing Dollar Tree's performance across all of these metrics.",
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      "kind": "paragraph",
      "text": "price point strategy. Thus, we do not believe that added supply chain complexity is a valid reason to not test the introduction of multiple price points into Dollar Tree stores.",
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      "text": "If Dollar Tree were to achieve financial results similar to Dollarama, significant upside exists in the stock. As shown below, even at a discount to Dollarama's forward EBITDA multiple of 13x and a lower EBITDA margin than Dollarama, we believe the Dollar Tree banner by itself could be worth approximately $33 billion, or approximately $120 per share.",
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      "text": "There are numerous examples of other dollar stores embarking upon this strategy and achieving significant success. We believe the most relevant example is Dollarama, a dollar store chain in Canada. Dollarama's shift towards multiple price points can serve as a blueprint for Dollar Tree as it embarks upon similar strategic changes. At Dollarama, when the company initially broke the $1.00 barrier by introducing $1.25, $1.50, and $2.00 price points in early 2009, same store sales growth more than doubled, driven by an increase in both average ticket AND store traffic.",
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      "text": "Source: Public company filings.",
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