Jim Cramer Says "It is Time to Buy Starbucks, Not to Sell It"

Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer recently covered. Cramer discussed the company’s ongoing turnaround under CEO Brian Niccol, as he commented:

“Brian never encouraged me to be as bullish as the analysts were. He emphasized endlessly that the turn would take time… What Brian ultimately found was that the whole Starbucks story was based on having fewer people working and a reliance on technology to do the job done… It was a slippery slope that led to a crash. Some analysts now blame the stock’s latest downturn on the slowness of the turn itself. I blame the decline on the lack of recognition from the analyst community, that Brian wasn’t playing UPOD. He wasn’t underpromising in order to over-deliver…

Now at last, I think Brian has his arms around what’s been going wrong. He knows that staffing, not technology’s the answer. He recognizes that not all the stores can be kept open because their layout doesn’t allow for a third-place transformation. I see the analysts turning against him though, largely because they got ahead of themselves, and that tells me it is time to buy Starbucks, not to sell it.”

Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, and ready-to-drink beverages along with food items through company-operated and licensed stores.

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