Jim Cramer issues an unhedged buy recommendation for Starbucks, citing CEO Brian Niccol’s past success at Chipotle.
Jim Cramer, host of CNBC’s *Mad Money*, advised investors to purchase Starbucks (SBUX) stock in a blunt post on X, marking a shift from his usual cautious stance. The call comes as the coffee chain faces skepticism over declining same-store sales and customer complaints about pricing and service delays. Starbucks’ new CEO, Brian Niccol, previously led Chipotle (CMG) through a recovery after a food-safety crisis, a track record Cramer highlighted as reason for optimism.
Starbucks shares have underperformed for nearly two years, with investors questioning whether the brand’s growth era had ended. The company’s pivot to higher prices during economic uncertainty has drawn criticism, as consumers cut back on discretionary spending. Niccol’s turnaround plan, though still in early stages, has yet to convince Wall Street, with many analysts awaiting tangible results.
Cramer’s endorsement lacked the usual caveats, signaling strong conviction in Niccol’s ability to revive the brand. The recommendation contrasts with broader market caution toward consumer-facing stocks amid inflation pressures.