Jim Cramer Says Buy Starbucks
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.
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.