Jim Cramer Tells Stephanie Link Starbucks Is Not a Coffee Business

Jim Cramer says it's a mistake to think of Starbucks as a coffee business, he says it's a financial machine that produces a huge amount of profit.
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Starbucks said Tuesday it will buy the remaining 60.5% of its Japanese joint venture it doesn't already own, thereby increasing its presence in its second-largest market by store sales. Jim Cramer says it's a mistake to think of Starbucks as a coffee business, he says it's a financial machine that produces a huge amount of profit. He says the company is in constant motion and deserves a premium multiple. Stephanie Link says this latest deal changes things significantly for the company because the margins for Japan are in the mid-to-low 20s. Cramer says he likes that Starbucks has a lot of financial flexibility and it's building up a lot of good news when people have kind of turned on it.