Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer shared his views on. Cramer said that he found the company’s earnings to be “pretty encouraging,” despite weaker-than-expected numbers. He remarked:
“Even though the headline numbers were weaker than expected, I found the overall results to be pretty encouraging. Keep in mind, Starbucks has been a long-term holding for my Charitable Trust, not always a good holding, but for the past year, ever since they poached Brian Niccol from Chipotle to take over as CEO, stock’s been doing much better…
When the company reported in late April, they posted a top and bottom line miss with some of their worst numbers coming from the United States business, sparking fears that the turnaround could be further out than we thought. Now, look, I remain a believer. I told investing club members to be a big buyer, but things did feel pretty grim…
And that’s what I found most encouraging about the Starbucks quarter, management’s plan for improving the core business here at home. They’re already showing some really promising results… At the end of the day, nothing else matters for Starbucks if it can’t turn the US business around. Now, they’ve gotten a proven way to make that happen. There was plenty of other positive news too…
… Putting it all together, I think it was a very positive quarter, even if the stock was all over the map today. I didn’t want to take my cue from the stock. It seemed to have more to do with the Federal Reserve. Well, that’s a little ridiculous. But don’t worry about these short-term swings, which were kind of a microcosm of the stock’s whole first year under Niccol’s leadership. Focus on what matters, the long-term turnaround plan, which is going well ahead of schedule. The bottom line: If Brian Niccol keeps delivering on the turnaround front, I bet Starbucks and its shareholders will be huge winners. That’s still my expectation here, and I feel even better about it tonight than I did last night before the company reported.”
Pixabay/Public Domain
Starbucks (NASDAQ:SBUX) operates as a global coffee retailer and brand. It offers beverages, food items, and packaged products through company-operated and licensed locations.
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Disclosure: None. This article is originally published at Insider Monkey.
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