Cramer's Morning Take: Starbucks 11/2/23

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Jim Cramer (0:33)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (0:39)

Maybe we should talk about earnings, and Starbucks is the big one of the day, of course. Much better than expected quarter, beating on revs, earnings. North America comps up 8%, US up 8%. Remember last quarter, the stock sold off significantly off a very small miss.

Jim Cramer (0:56)

It was 7%, but if they had done 80 million more, it would have been 8 Well, they did 8

Jeff Marks (1:01)

Well, you got a big beat today.

Jim Cramer (1:02)

Then you got China doing great.

Jeff Marks (1:04)

Yeah, China better than fear. China up 5, looking for 4-7 despite concerns.

Jim Cramer (1:09)

They distinguished that even though others may be doing well, that Starbucks is unique in terms of the experience and the love. They could use many, many more. As a matter of fact, Starbucks is going to say tonight, when I had them, I believe, they need twice as many Starbucks and they need them now, particularly because of the day part. This cold movement swept the company by storm.

They missed it. Now they got it.

Jeff Marks (1:35)

Yeah, and I know they're talking on the call about bringing more ice machines to the most ice constrained. It's funny, ice constrained stores.

Jim Cramer (1:43)

They're refining their stores to be able to make it so you can make eight ice drinks at once. Here's something interesting.

I know that people might say, wait a second, this is probably done. There are 10 major analysts that have downgraded or have it as a neutral.

I know this is going to sound counterintuitive, but analysts do not look at that. They look at their models. They see that it beat their models substantially, and they upgrade. So I'm urging you not to sell ahead of Luxman, Narcimen, or May of Money tonight, and ahead of the expected upgrades we get. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive warning minis every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

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