It’s been a terrible first half of the year for Starbucks Corporation (NASDAQ: SBUX), but Jim Cramer is convinced it will be a different story moving forward.
Cramer’s bull case for Starbucks Corporation
Cramer’s confidence in the multinational chain of coffeehouses is attributed partly to the leadership of Howard Schultz. This morning on CNBC’s “Squawk on the Street”, he said:
Howard Schultz is trying to figure out the next level of Starbucks. He’s trying to figure out how to make it so that workers are well compensated. I think he’s very involved. He’s seen downturns and that’s who you want to run the company.
Starbucks’ sales were up nearly 15% in the latest reported quarter. Down 35% versus the start of 2022, the Mad Money host dubs SBUX a “bargain” right now. Wall Street has an “overweight” rating on the stock as well.
China could be a catalyst for the Starbucks stock
News from China on the COVID front have also been fairly positive in recent days, which, as per Cramer, could be another significant tailwind for the Nasdaq-listed company.
If China demand comes in, you buy Starbucks [with] a 2.80% dividend yield. I’m all in. The only reason that my Charitable Trust doesn’t own it is simply because I did not expect China to turn like this.
Starbucks pulled out of Russia last month in response to its war crimes in Ukraine. Other stocks Cramer likes here include Nike Inc that’s scheduled to report its quarterly results today, after the bell.