12 Stocks Jim Cramer Was Right About

3. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 84

Back in 2024, on May 15, a caller on the Mad Money show asked about Starbucks Corporation (NASDAQ:SBUX), citing busy drive-throughs and new promotional efforts. Cramer acknowledged past missteps but remained cautiously optimistic.

“Okay, I think Starbucks — the stock is too cheap. I think that they have to — uh, let’s just say they’ve got to be realistic that a turn’s going to take a while and that a plan includes having, say, a Starbucks 2 like Panera 2, where they really figure out how to handle throughput and they figure out whether the baristas can make all the drinks and how to handle the lines and mobile order pay without cutting in front. And they have to do those things — and when they do that, they’ll get it right. So no, my trust owns it, but you see, my trust is down a huge amount — and when that happens, it’s my fault, okay? It’s my fault, because I believe. And when you believe and the stock goes down, it’s on you, not on them.”

Starbucks rebounded moderately after Cramer called it cheap, climbing 13.67% and rewarding those who held on.

Starbucks Corporation (NASDAQ:SBUX) has benefited from loyalty program expansions and international growth despite internal restructuring challenges. Following a recent dip in early April, Cramer advised his viewers to not sell the stock:

“Starbucks down eight. Should we not think about he’s got it under force, under four minutes now?”

“Look I’m just saying that Starbucks is not a great sale here at 91. It’s just not.”

Ahead of the company’s earnings report, Cramer had this to say in late April:

“Tuesday night, okay, I’m betting that Brian Niccol will spell out his strategy for Starbucks, both domestic and international…. The stock first shooting up 30 points on Niccol’s appointment and then giving almost all of it back when the numbers didn’t turn around immediately and the market got ugly. I always thought that a quick breakout was a ridiculous assumption, but now the rubber’s going to hit the road, and I still don’t see a breakout quarter, but we’re going to hold it nonetheless.”