Jim Cramer on Wednesday criticized Starbucks CEO Laxman Narasimhan in an interview with CNBC after the coffee giant had a terrible quarter and misdirected. With Starbucks shares down more than 15% following the quarterly release and conference call Tuesday night, Jim Narasimhan asked in a CNBC interview why the club was holding on to portfolio shares for another quarter. Narasimhan responded in part by saying: “It is true that we had a difficult quarter, but we have an action plan against that. … We are fully focused on a business-as-usual plan to reverse some of the trends.” That we've seen and we have demand that we can meet and we have strong products in the pipeline… I think what you've seen is real progress as a business.” The CEO said the company sees a “really strong foundation for the business.” After controversial exchanges with Narasimhan on “Squawk on “I'm stunned,” Jim said. “I'm disturbed by this situation even knowing that Mr. Narasimhan has a business plan,” Jim said. “It's a matter of trust,” Jim said, saying a CEO shouldn't try to paint a picture of a company that can build On Strengths to Right the Ship. Message from Narasimhan to Jim on TV: The quarter was bad due to volatility in China and bad weather in the US. The CEO announced a business plan centered around winning more business from casual Starbucks customers Turning and forcefully asking why Starbucks is still moving forward with expansion plans, the CEO pointed to growth in markets like Latin America and Japan and said the readings from Tim Horton's, McDonald's and Dunkin' Donuts said otherwise. Loyal Starbucks customers are participating despite a quarterly decline in loyalty program users and long wait times to complete online transactions, Narasimhan said. The CEO said wait times on the app are improving. Jim's Charitable Trust, the portfolio used for the CNBC Investing Club, owns shares of Starbucks.
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Jim Cramer criticizes Starbucks CEO in CNBC interview after terrible quarter: 'I'm stunned'
