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Jim Cramer says that don't count Starbucks – not with the reversal specialist Brian Niccol at the helm. Despite a deadly quarter for Starbucks and the drop in the 7% of Wednesday shares, Jim stands near the title and the CEO, which is only about 7 and a half months. “It is Brian Niccol. He is the best there is,” said Jim on “Squawk in the street” Wednesday, defending the CEO of Starbucks after the company has released a trimester disappointing the day before. “It was obviously a bad hand. People did not know how bad the hand was,” said Jim, referring to the problems that Niccol inherited when he jumped Ship as CEO of Chipotle to try to revise the cafe giant in difficulty. Starbucks' shares dropped up to 11% on Wednesday at less than $ 76 per share after the company declared a lower than expected profit per share (BPA) and its revenues for its second quarter for the 2025 fiscal year. While sales with comparable stores in the United States have missed, international, Beat and China were flat, which broke a sequence of four quarters. Jim sees the drop in action as an opportunity to buy. “We would buy Starbucks (Wednesday), but now we are limited,” he said at our morning meeting. We cut our Starbucks position on February 10 north of $ 111 per share, then again on February 28 at almost $ 115, which was at the time of 52 weeks. We knew that the turnaround was not going to be easy. We bought some of these actions last week when they fell 30% from our last sale. It turned out to be a little early. Now we are looking to buy again when we have the opportunity. Sbux ytd Mountain Starbucks Ytd the Confidence that Jim A in Niccol comes directly from the CEO messaging during the interview on Wednesday CNBC. “(Niccol) said nothing that tells me that this turnaround is not on the right track,” said Jim. He added that Niccol saying that he buys Starbucks stock “all the time” has really stood out. We are aware that the turnaround will not be linear, but Wall Street hoped for faster progress, especially since Niccol became a chipotle in less than a year when he took office as CEO of this company in 2018. Before Chipotle, Niccol helped restart the Taco Bell brand. Jim stressed that Starbucks is another type of challenge. “I do not know if people remember, but Chipotle had just been involved in one of the worst situations that you could have as a restaurant – people fell ill throughout the country. In six months, he turned it. Ok, so now, we are six months (with Starbucks), and that's why analysts say:” Six months and where is the turn? “Can I emphasize that Chipotle was a better business than Starbucks; he had something to work,” said Jim. Niccol himself recognized that the early gain will not be for finances. “In the short term, revenues will be lagging behind,” the CEO told CNBC. “But if you stimulate growth, do the right thing for the customer (and) our partner, financial performance supports him.” Part of this effort at Starbucks includes pilot stores that test Niccol's new strategy. The first results are promising, with average waiting times of cafes and drive-thru and mobile orders that strike the brands in time. A major change has been to remove investments from the equipment and to work. “The solution is to determine the right endowment, the right deployment, so our partners are set up to succeed and therefore give our customers a great experience and an excellent connection,” said Niccol at the Tuesday evening post-benefit call conference. He noted that a pilot of 700 stores showed better service speed increased, customer connections and transactions. Niccol said on CNBC that he was trying to master costs and balanced them against investment in the company. He said Starbucks was previously too concerned about “Back of the House” production and not enough about consumer experience “Front of the House”. He also reiterated that Starbucks will not increase the prices this year – and in fact, he underlined the withdrawal of the company for dairy alternatives such as coconut and almond milk. In 2026, there is more for investors to hope. Niccol said that next year, the company will focus on the reconstruction of its innovation pipeline with plans to develop new food and drinking offers, improve the digital experience and update the Starbucks awards program. The CEO has developed the long -term and fundamental strategy, saying that it is a question of setting up Starbucks to be “the global emblematic brand that it is”. In the CNBC interview, Niccol also said that Starbucks would be a long -term player in China, although he has not excluded some local expertise thanks to partnerships. He underlined the flat compositions of China as proof that storage traffic in the second world economy returns. He added that he saw no impact on the affairs of the American-Chinese trade war. (Jim Cramer's Charitable Trust is long sbux. See here for a full list of actions.) As abonted at the CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim is doing a business. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. The above information of investment clubs is subject to our terms and conditions and our privacy policies, as well as our warning. 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The CEO of Chipotle Mexican Grill, Brian Niccol, speaks with Kate Rogers of CNBC at the CNBC Evolution conference on November 19 in Los Angeles.
Jesse Grant | CNBC
Jim Cramer says does not count Starbucks Out – not with the reversal specialist Brian Niccol at the helm.
