Will success spoil Starbucks? Does it risk becoming another Panera (PNRA)? That particular company executed badly this quarter, in part because it took too long to order and get food -- something that I saw at my own Panera just last night.
Howard put social and mobile genius Adam Brotman on the call Thursday night, and I think the reason has to do with the company adopting best practices involving mobile -- 10% of orders are done by phone. That helps the throughput that is plaguing Panera.
Starbucks is hitting on nine cylinders. I say that because it will have to return to eight soon. It was a stunning quarter, but not all that is replicable, because everything went right. Things will slow.
Still, though, it was as close to perfection as I have ever seen a quarter be. That's pretty amazing when you consider that this stock traded at $43 this time a year ago, when Europe plagued the company and China slowdown worries were the mainstay of the conversation.It was truly a quarter for which management should be congratulated. Well done. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the securities mentioned.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV