Cramer's Morning Take: Starbucks 5/6/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

Let's talk about one that did fit the pattern of this weekend, which is Starbucks.

This was one where Karen would have said, are you out of your mind? Look at the way this thing acts. Okay, and we don't do that. Now, maybe we should do that, but if we're going to do that, then I'm not going to sit here and work for this company. I'm going to go and work 24 hours, 24-7, be hedge-fund trading. I've noticed how I do that. I want to teach.

I have to mention Karen simply because she was part of the equation of the way things work. She would say that, obviously, you're wrong. I would say, listen, we're going to own it, and Locksman-Narris-Simmons is turning around. She would say, I don't know who Locksman-Narris-Simmons is. I know that the stock is going lower. What happened here this morning is that we got a very difficult LinkedIn post, which basically said that Locksman was not contrived. That's when he was on CNBC. That Locksman has not figured out how to turn around America. And he did say that the board members have to go into the...

The board members should be going to the stores, which is very different from what they do. That I know of. Now, Melody Hobson, who's the chairman, very independent, she picked, she was part of a team, but she was the driver for Locksman. So I think that the whole idea that even though the stock's down 23%, it's just, I mean, I don't want to call Howard from the peanut gallery, because that would be too mean. He created this company. But he can have very strong views about how it's doing, and maybe they consider, maybe they don't.

SPEAKER_2 (1:36)

I did like what he say about it. It's not the miss that matters, it's what happens next. It's kind of the move forward onto Cincinnati type attitude.

First action plan, reinvest in mobile ordering and payment platform, which I think did come up on the call, but also the go-to market strategy needs to be overhauled. Coffee forward innovation. So maybe they're just kind of losing their way, so to speak, in terms of energy drinks.

Jim Cramer (1:59)

Right. Well, I think that really, if you want to add, sit back and say that Howard, like many, like us, we expected a bad quarter, but we did not expect the worst quarter of the year.

SPEAKER_2 (2:12)

No, not that size, clearly.

Jim Cramer (2:13)

No, when you get the worst quarter of the year, I could argue that that's the case. You have to throw yourself on your sword and say, listen, I really screwed up, and I've got, I have a lot of learning to do, and I'm gonna learn how to do this. Not a three-point plan that seemed to me to not address, at court, it is an existential crisis. And I think that what Howard was concerned about was that no one is taking this decline seriously. They just don't seem to think it matters that much.

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SPEAKER_3 (3:00)

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