Cramer's Morning Take: Starbucks 4/30/25

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Jim Cramer (1:02)

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

SPEAKER_6 (1:10)

Why don't we talk Starbucks? They reported last night, it wasn't missed, comparable sales, earnings per share, a big miss. Disappointing, but the reaction today was down, call it 10% at one point. So it's come off slightly off the low.

Jim Cramer (1:26)

This is Brian Nicol. He said nothing that indicates to me that this turnaround isn't on track. He just got his team, it's one month. Every single Starbucks that he touches, every one is now showing good comp numbers. The China numbers are much better than expected. And what does he say? He goes, I know I'm doing badly, come on. It's not ready. I mean, I don't get a growth. I mean, I don't know if you heard the interview, but the gist of the interview was, look, I'm doing my best. It's very tough. They overspent on technology and they underspent on Stanford. I got to reverse that.

SPEAKER_6 (2:01)

Yeah, that was one of the big notable things from the call is that they are investing more in OPEX, labor versus CAPEX equipment. And that's going to pressure earnings. He said earnings, maybe not the best indicator of the recovery.

Jim Cramer (2:15)

But then I think there's some, but he did say, when I interviewed him, he said, look, come on, Jim, I know growth is the point. We have to have growth, which is a synonym for you.

SPEAKER_6 (2:23)

And it seems like they have found something with this new mobile, this new order sequencing algorithm.

Jim Cramer (2:29)

Yes, and how about the loyalty program, which he missed was a bad just coupon loyalty program. This is going to be much better.

SPEAKER_6 (2:34)

But with that sequencing, in their test locations, the average cafe wait times drop by an average of two minutes. So you have three fourths of cafe orders under that four minute at peak. That's just called right coffee in four minutes or less. And international, by the way, eight of the top ten international markets return to flat comp or comp or itself.

Jim Cramer (2:52)

This is him. I mean, look, he owns it, all right? I think that when I asked him about whether you should own the stock, his reaction was very clear. Absolutely. It's just a great opportunity. I'm with Brian Nicol. I remember when he tried to turn around, Choco Bell was minus two, minus four, and he turned around. And he came to Chipotle. I don't know if people remember, but Chipotle had just been implicated in one of the worst situations you could possibly have as a restaurant, which people getting sick all over the country. And think about that. What happened? In six months, he turned it. Okay, so now we are in six months, and that's why the analysts were saying six months, and where's the turn? Can I just point out that Chipotle was a better company in Starbucks? He had something to work with. He has to really do a lot of fixing.

SPEAKER_6 (3:41)

Yeah, no, I think that's fair. We trimmed it a couple of times above 110 earlier this year. We pointed out, you know, turnarounds never easy, never linear. We did buy back a little bit, I believe, last week too early, obviously no good there, but as you said, looking to buy back some of the other parts.

Jim Cramer (3:58)

I think you buy it. I think we need to, look, I know it's oversold. I know that I don't want to buy anything that's not oversold.