Squawk on the Street

Cramer's Morning Take: Starbucks 8/13/24

Jim and Jeff discuss Starbucks CEO shake-up. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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Duration:: 5m
Broadcast on:: 13 Aug 2024
Audio Format:: mp3

CNBC Investing Club Disclaimer

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Hey, it's Kramer and this is my morning take on the market from today's CBC Investing Club Morning Meeting. There's so much to talk about. I hesitate to just spend a second, at least, on the fact that the backdrop today is very good because the PPI shows you once again that we're back at a level that is totally sustainable in terms of you didn't want inflation, and the oscillator is minus 2.2, so it's kind of perfect. Yeah. We'll see CPI tomorrow. Of course, we need the inflation data to be held in check so that the Fed is able to lower rates as they're also mindful of the jobs market as well. You have to see we're seeing yields fall, 10-year yield back under $3.9, maybe that's supporting some of the housing-related stocks. Right. So, I think we have to get to the story of the day, that being Starbucks, CO change, Lussman, Harrison, and Al. This is a demonstration of the whole way. This is a demonstration of our decision to say it's not the franchise, it's the leader. And I came about that, obviously, I had an interview that was very difficult on CNBC that I'd like to do with a quarter that was the worst versus expectations I have ever seen. And believe me, I'm not the only one who saw it. I think the board saw it, and the board recognized, and it made me through Howard, maybe not Howard still, Howard still still has a number of friends. Howard's very unhappy with it, but what I want to say is everyone was, you don't ask the guy and just say, "Hey, goodbye" if you just just made him CEO recently, but someone called Brian Nickel, who is the best, and Brian, from Brian Nickel from Chipotle. And Brian Nickel said, "I'll take it." And Brian Nickel loves Chipotle. This is such a big deal. Brian Nickel is one of the most impressive CEOs, I haven't loved the guy, I've put it in my eye, I love it. And this was amazing. Stocks up about almost, before today, 800% since Nickel took over years ago. He came in when there was a big member, a big airborne problem, the illness problem. He saw that. He solved so much. Well, he's got Howard Schultz's stamp of approval. He was quoted in the press release, saying he's the leader. The company needs right now. And interestingly enough, so there's two activists involved right now at Starbucks, and Elliot's involvement was one of the reasons why we recently added to our position, upgraded the stock back to award. But what's interesting here is that this decision to hire Nickel came without the direction of the activists. Not yet, my understanding is the activists played very little role. I think that when I look at the board, there's some people who are obviously very busy who are good people. Mike Siebert is a great guy at T-Mobile, but he's working at T-Mobile for him, he's like, "You got it, it's a handful." Melody Hobson, obviously this morning, very much wanted to do it. Howard, militating, did matter because they know he's good. Now you have a guy like Rich Allison, the dominoes guy who was like, "Oh, you know, he took a little time at dominoes." You don't have the bimbo guy from Mexico who was a very important executive, maybe played a role, bimbo being a youth break company. But there was no one that I looked at on the board where I jumped out at me and said, "This person is going to push out, locksmen." But therefore it makes me feel like it wasn't real combined effort. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC Investing Club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet, or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer. Want a website with unmatched power speed and control? Try Bluehost Cloud, the new web hosting plan from Bluehost, built for WordPress creators by WordPress experts. With 100% uptime, incredible load times, and 24/7 WordPress priority support, your sites will be lightning fast with global reach. And with Bluehost Cloud, your sites can handle surges in traffic no matter how big. Plus, you automatically get daily backups in world-class security. Get started now at Bluehost.com. [BLANK_AUDIO]