Jim Cramer on Starbucks: “I Think It’s Ready to Break Out”

Starbucks Corporation (NASDAQ:SBUX) was on Jim Cramer’s Mad Money game plan for the week ahead. Noting the stock has been going up, Cramer said:

And now you know what this is, this is Starbucks, and the stock’s been creeping higher. Can it sustain the move? This level’s been challenging for Starbucks, actually, but I think it’s ready to break out.

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Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, and other beverages, as well as food products, through its stores and licensed outlets. The company’s brands include Starbucks Coffee, Teavana, Ethos, and Starbucks Reserve. When a caller inquired about possible headwinds for the company on February 27, Cramer said:

That’s a great question. Okay, here’s the other thing that can really hurt Starbucks, and you know, I’m a big believer and have a big position in my Charitable Trust, what can hurt them is the inability to be able to close all the stores that aren’t doing that well and then put the money towards the ones that are doing well. And… That’s how you have to get same store sales. And it’s very difficult for Brian Niccol to say, okay, that store closed, this store open. We see a lot of it in New York, by the way. He has to get the Starbucks into the middle of the country. They’re underrepresented in the middle, and they’re overrepresented in the coast. And I think he’s going to take care of that, but it just takes time.

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