Jim Cramer Says Buy Starbucks

Daniel Kuhn

Missing that cup of Venti cup of Pike’s Place? You might be getting it back sooner than expected.

Starbucks (SBUX) - Get Report announced late Monday that it plans to open a majority of its stores in the U.S. by the end of this week.

In a letter to shareholders, Starbucks CEO Kevin Johnson said the coffee chain plans to have 85% of its stores open by weekends, with 90% of U.S. stores opened by early June. Johnson noted that the stores will operate under modified operations and hours and will “exceed the standards outlined by the Centers for Disease Control and Prevention for a safe experience.” Stores will emphasize cleaning and sanitizing protocols.

Starbucks will also continue to focus heavily on drive-thru, mobile ordering and contactless pickup. Nearly 20 million customers are using the Starbucks app, Johnson noted.

Johnson wrote that Starbucks is able to capitalize the experience and lessons it learned in China, where 98% of stores are now open. “The foundation of our approach comes from what we have learned in China,” Johnson said.

The news had TheStreet founder and ActionAlertsPLUS portfolio manager Jim Cramer more than a little excited late Monday. Cramer tweeted that the letter was a real shot of espresso for the stock.

As of the opening bell, Starbucks was up 2.85% to $73.94.

Cramer will be breaking down Starbucks and more of the top names in his portfolio during his ActionAlertsPLUS conference call on May 7, and this time around, you don’t have to be a member. Here’s how you can watch it live on the StreetLightning.

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Comments (9)
No. 1-9
Bill Enright
Bill Enright

Great call by Jim, Jeff and the AAP crew. My portfolio would be trash without them!!!

RolandM
RolandM

A major bellwether of activity in the Big Apple.

DS9
DS9

I miss my Matcha Lattes.

Jaime Eisner
Jaime Eisner

Back sooner than I thought! Exciting.

dougv
dougv

I miss getting my Treinta Cold Brew on the way to 14 Wall and 225 Liberty every morning!

kdriscoll
kdriscoll

can't wait to get my latte

julie iannuzzi
julie iannuzzi

i'll take a double shot, skinny, coconut milk caramel macchiato venti -- with some social distancing please.

bykatherineross
bykatherineross

Watch Jim Cramer's and my full Daily Rundown show to see what else he has to say about Starbucks. https://aap.thestreet.com/

DanKuhn14
DanKuhn14

Editor

Can other fast casual follow in Starbucks' footsteps or is SBUX a winner on its experience in China?


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