Cramer Says Starbucks (SBUX) Turnaround is 'Real'

Shares of Starbucks (Nasdaq: SBUX) could be feeling a modest bounce this morning on the back of a Jim Cramer tout late Friday during his Mad Money show. The stock most recently traded at $17.36, up 0.8% from Friday's close.

Cramer believes a turnaround at Starbucks is now effectively happening, mentioning Howard Schultz's return, an increased focus on profits rather than sales and drastic cost cutting measures. Cramer noted that since the restructuring initiatives began, Starbucks has closed more than 800 stores, cutting about $700 million in expenses from its cost structure.

Jim also said he is impressed with Starbucks qualitative initiatives, pointing out that improvements such as store remodels and new production introductions are similar to the turnaround at McDonald's in 2003.

Even considering the stock's 140% run-up since the lows set in November of last year, Cramer admitted that "the stock has a lot more to run..."

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