Jim Cramer Discusses Starbucks (SBUX)'s Big Turnaround In Detail

We recently published 15 Stocks Jim Cramer Mentioned As He Said Quantum Computing Worried Him. Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer recently discussed.

Starbucks Corporation (NASDAQ:SBUX), a frequent feature of Cramer’s morning show, was in the news earlier this week after it revealed an aggressive restructuring plan part of CEO Brian Niccol’s turnaround efforts. This plan will see the firm let go of 900 non-retail employees and shut down under-performing stores. Cramer’s a big believer in Niccol, and he discussed the CEO’s latest announcement:

“[On new restructuring plans] I think it’s very important. I mean these are the places that Brian doesn’t think can be traditional coffee houses like he’s trying to do. I mean there’s also an element which is that they don’t have any space to be able to good mobile ordering. Now I have to tell you this is what I’ve wanted. The reason I’ve wanted it is because you want these same store sales up. And you can get them two ways. You can get them by boosting sales or you can get them by keeping the good ones good and by closing the bad ones. And that’s exactly what he’s doing. David, you can’t succeed in a turnaround if you have a huge number of laggard stores that are doing nothing for you.

“I mean don’t put money in the bad. Don’t throw good money after bad. Go after where they can have. . .ordering and have a nice coffees. Now I don’t know if you remember, there was one across the street from us. And it was a standing coffee. Well that’s not what they wanted. There was one over at Trinity Church, that was like again, no place to sit.

“[On if he’d changed his views about how long it’s going to take and whether it’s going to be effective] Well Brian made me change. Brian Niccol. He just said Jim, nothing private to me, it’s taking longer than he’d like. But he’s been very vocal about that. And one of the reasons it’s been taking longer was, look, he doesn’t throw people under the bus.”

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Disclosure: None. This article is originally published at Insider Monkey.