Jim Cramer Talks About 5 Consumer Stocks As Americans Push Back on High Prices

3. Starbucks Corp (NASDAQ:SBUX)

Number of Hedge Fund Investors: 59

Cramer said in his latest program that he knows Starbucks Corp (NASDAQ:SBUX) has “disappointed” and Starbucks Corp’s (NASDAQ:SBUX) coffee is “pretty expensive.” He thinks Starbucks Corp (NASDAQ:SBUX) coffee has always been expensive.

Cramer said Starbucks Corp (NASDAQ:SBUX) is not mulling any price cuts. Instead, the company is adding more menu items that could lead to “worst through puts” which according to Cramer is another “unacknowledged problem among many.”

Cramer said that owning Starbucks Corp (NASDAQ:SBUX) for his charitable trust has been “nothing short of a brutal experience.”

Vulcan Value Partners stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its first quarter 2024 investor letter:

“We are pleased to have purchased Starbucks Corporation (NASDAQ:SBUX) in the first quarter. We have owned the company in the past, and it was a good investment for us. The company has strong brand recognition, global distribution, and outstanding retail real estate. The company generates robust free cash flow and has high returns on invested capital as well as a strong balance sheet. Starbucks has used its financial resources to strengthen its brand and enhance customer loyalty. Additionally, the company has continued to see attractive returns from opening new stores. Stock price volatility over the last year is likely due to management changes, disappointing short-term results, and general hesitancy about consumer spending. We believe that Starbucks’ competitive position remains intact, and its value will continue to compound over our five-year plus time horizon.”