Starbucks Corporation (SBUX): "This Man Is Taking Action," Says Jim Cramer

We recently published a list of Jim Cramer Discusses Quantum Computing Stocks Among These 12 Stocks. In this article, we are going to take a look at where Starbucks Corporation (NASDAQ:SBUX) stands against other stocks that Jim Cramer discusses.

Starbucks Corporation (NASDAQ:SBUX) is a coffee chain that is currently in the midst of a turnaround effort led by CEO Brian Niccol. The firm’s shares are up by a modest 1% year-to-date after having dipped by a massive 19.8% in April. Starbucks Corporation (NASDAQ:SBUX)’s shares sank after President Trump’s Liberation Day tariffs generated jitters about firms with exposure to China. The stock then tumbled by 11% in late April after the firm’s second-quarter earnings miss added fuel to the firm and created doubts about the turnaround strategy. Cramer commented on both, the China exposure and the earnings:

“Last quarter, Starbucks, Brian Niccol, people thought he laid an egg. It was awful. Stock broke to 75. We stuck by it, David, and I just think this is what happens if you stick by quality management with a quality product. This morning, the FT has a piece that says Starbucks had received a lot of interest, according to Brian Niccol, in the sale of a stake in the China business and it’s very very bullish and it talks about how there are a number of people who would like to buy a stake. The good news, they’ve got a lot of interest, a lot of interest, said Niccol and I’m going to leave it to you on your M&A front to see well what could this mean. But I think that it’s very positive.

“I thought that you [David Faber] would like to hear that. Because what it says is that this man is taking action. He’s not just sitting back and saying I’m going to get my head beat in. So I really, really like this story. 7,758 stores. I like the call. I think it’s a buy. There you go.”

Cramer’s an ardent believer in Starbucks Corporation (NASDAQ:SBUX) CEO Brian Niccols. Here’s what he recently said:

“I see the name Starbucks Corp (NASDAQ:SBUX) stock down five and change and I’m boiling. I got—I’m steamed. Not the company or the CEO Brian Niccol or even the coffee. No, I was steamed because of the stupid sellers who are furiously dumping the stock as fast as they could. Sell, sell. There’s Brian Niccol. How dare they. The market opened up hideously off an awful gross domestic product number this morning—showed the economy actually shrinking. Oh my god. 3% in the first quarter. So Starbucks Corp (NASDAQ:SBUX) was just part of the red ink that drenched us.

Why? Because of Niccol, that’s why. You see, I find that when you have a bankable jockey — and Brian’s the man who previously turned around Chipotle — the operator took the chain from the brink of food contamination death and moved the stock up 776% during his tenure versus 109% for the S&P. Well, you gotta ride him. Niccol. You gotta ride him. A Starbucks Corp (NASDAQ:SBUX) newfound glory coming.”

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