Jim Cramer Destroys New Starbucks CEO In Heated Interview, Says He Was “Stunned” As Its Former CEO Admits a “Fall From Grace”

Jim Cramer Destroys New Starbucks CEO In Heated Interview, Says He Was “Stunned” As Its Former CEO Admits a “Fall From Grace”

Jim Cramer destroys new Starbucks CEO in heated interview, says he’s ‘stunned’ as former CEO admits ‘fall from grace’

Despite a good start to the year for the stock markets, investors Starbucks (NASDAQ:SEX) were bitterly disappointed that their shares were down about 20% as of this writing.

After failure to win, Laxman Narasimhanthe new CEO of Starbucks, appeared on Jim Cramer’s Mad Money to attempt to explain both the results and the path forward for the company.

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Much of the discussion focused on whether Starbucks’ premium coffee was too expensive, with Jim Cramer asking early in the interview whether the coffee might be “just too expensive.” In response, Mr. Narasimhan admitted, “we haven’t been able to communicate (to the casual customer) the value we offer,” while emphasizing that his core customers still saw value.

Some commentators couldn’t help but note the irony of Starbucks’ expensive coffee offering any value, saying “Mocha went from $4.75 at my house to $6.25 in 24 months. It was already too expensive before the price hike. That’s why your quarter sucked.”

Meanwhile, others praised Jim Cramer for the intensity of the interview, with one YouTube user saying “Wow Cramer actually burned a frame.”

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Of course, Jim Cramer may have demonstrated additional frustration given that he owns Starbucks stock. Despite Cramer’s disappointment that management failed to warn investors about the company’s deteriorating financial performance compared to their prior earnings forecasts, he still plans to hold the shares for the time being.

Although Mr. Narasimhan has only been CEO for a little over a year, he has struggled to escape the shadow of his successful predecessor, Howard Schultz, who was CEO of Starbucks for three separate stints and counting. to remain the main shareholder.

In a LinkedIn post published by Mr. Schultzhe identified areas where the company should make improvements, specifically stating that “the company’s solution must start at home: U.S. operations are the primary reason for the company’s fall from grace” and that “Stores require a maniacal focus on the customer experience, through the eyes of a retailer. The answer lies not in data but in stores.

Not only Jim Cramer”dizzy” After the bad quarter, he was also surprised by the level of candor from the company’s former CEO, saying it was unlike anything he had ever seen before.

It remains to be seen whether Howard Schultz feels the need to serve his fourth term as CEO of Starbucks. Shareholders, including Jim Cramer, are losing patience and are waiting with bated breath to see if Starbucks’ turnaround plans come to fruition.

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