Jim Cramer Says Starbucks CEO Kevin Johnson Is Too Bullish

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Jim Cramer weighs in on earnings from Starbucks. 

"I just think so much has to go right," Cramer said, referring to headwinds including the 2020 election and the ongoing coronavirus pandemic. 

Starbucks posted adjusted earnings of 51 cents a share, topping analysts' forecasts. Sales were $6.2 billion vs. $6.06 billion expected by analysts.

The company said it lost $1.2 billion in sales because of the pandemic.

Starbucks said that while global same-store sales fell 9% during the quarter and the number of transactions declined, customers are spending more on treating themselves to higher-priced hot and cold specialty drinks and snacks.

In the U.S., September same-store sales declined a more moderate 4%, bolstered by the return of the company’s high-demand Pumpkin Spice latte.

“I am very pleased with our strong finish to fiscal 2020, underpinned by a faster-than-expected recovery in our two lead growth markets, the U.S. and China. These results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to meaningful changes in consumer behavior and the extraordinary efforts of our green apron partners to serve our customers and communities in challenging circumstances,” said Kevin Johnson, CEO.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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