Jim Cramer on Starbucks: "I Think This Turn Is Solid and Long-Lasting"

Starbucks Corporation (NASDAQ:SBUX) is one of the stocks that Jim Cramer shared takes on, along with navigating market shortages. Cramer was bullish on the stock and noted that the Charitable Trust has a “huge position” in it. He commented:

When Brian Niccol took over as CEO of the down-and-out Starbucks in August of 2024, he had one goal: getting you a cup of coffee in four minutes or less. Today, we saw the fruits of his labor, a gigantic upside surprise to the same store sales, how the average store did versus last year. And for a moment, it looked like Wall Street was finally seeing the darn light at the end of the tunnel… The stock eventually pulled back hard over the course of the day. Look, that’s what happens when you run big into the quarter, which is the case here. I still think it was a huge positive…

By changing up customer service standards, having bigger employee rosters, lower partner turnover, and delivering what he called consistent, timely, and personal service, no pizazz, just basic blocking and tackling, he has changed the guts of the experience… The active members reached 35.5 million customers. Rewards transactions grew for the first time in eight quarters, and even non-reward transactions grew. Highly unusual. In fact, this was the first time Starbucks grew both rewards and non-rewards transactions since the second quarter of fiscal 2022. More transactions, more transactions. That’s what you want, not on price. And that’s how Brian’s been able to win the morning, or I should say win back the morning because Starbucks can finally handle its early traffic…

Tomorrow, Niccol will expand on the turn at his investor day meeting. I think you’ll hear more about what’s returning Starbucks to the rightful place in the morning. Of course, it’s not necessarily a needle mover as this stock had run up into the quarter, as I mentioned, but it makes for a much more compelling long-term story. We have a huge position in Starbucks for the Charitable Trust. We aren’t going to buy more, I can tell you that. But if you don’t own any, I think this turn is solid and long-lasting, and the price is going to be right.

Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, and other beverages, as well as food products, through its stores and licensed outlets. The company’s brands include Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, and Starbucks Reserve.

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