Squawk on the Street Cramer's Morning Take: Starbucks 10/10/25
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Oct 10, 2025 Jim Cramer reveals his enthusiasm for buying Starbucks stock despite current consumer challenges. He highlights the company's innovative product strategy and praises its leadership, comparing the CEO to successful turnaround figures like Pepsi's Ramon Laguarta. Cramer discusses the potential for Starbucks to exit its China operations as a strategic move. He also shares insights from a positive survey on Starbucks, drawing intriguing comparisons with Nike's brand performance.
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Starbucks Turnaround Potential
- Jim Cramer sees Starbucks as a turnaround play despite recent weakness in consumer stocks.
- He believes new leadership and product initiatives can materially lift the stock toward his target.
Pepsi CEO Analogy
- Jim Cramer compares Starbucks' new CEO to Ramon LaGuardia, who revitalized Pepsi with snacks and drinks.
- Cramer uses that analogy to illustrate how product expansion can rescue and revalue a large consumer brand.
Strategic Optionality Reduces Risk
- Cramer believes Starbucks' CEO has a credible plan and flexibility, including the option to exit China.
- That strategic optionality reduces downside and supports his confidence in the stock's recovery.