Mad Money

Starbucks CEO: We’re In Early Stages of Growth

Starbucks CEO: Staying Relevant
Starbucks CEO: Staying Relevant

Does your portfolio need a little kick? Cramer suggests sipping on a little Starbucks.

After talking with CEO Howard Schultz, the Mad Money felt all the more confident that Starbucks shares would pack a powerful punch, for quite some time to come.

"If you want to understand the power of a great American brand with great American management, just take one look at Starbucks, a stock that's rallied more than 12,300% from when it came public 21 years ago today," he said.

Largely, Cramer sees Starbucks as a company with significant growth potential.

Schultz confirmed that Cramer was spot on. "Despite being a public company for 20 years Starbucks is in the early days of its growth and development," Schultz said.

That is, the CEO believes that the Starbucks brand and its products will be as embraced in other parts of the world, as enthusiastically as they are here, in the United States. "We have 1000 stores already in China and in years to come we will have thousands more," he said. Schultz also said Starbucks intends to expand in India and many other parts of the developing world.

"It's just a fantastic story," Cramer said. "This is why I like the stock so very much."

In the past Cramer has cited many other metrics that he believes makes the stock fundamentally sound. Some follow:

Howard Schultz, CEO of Starbucks
Adam Jeffery | CNBC

- The company should be able to grow its earnings per share at a 20% annual clip over the next five years.

- Starbucks is also renovating about 1,700 of its stores to drive more traffic.

-The company is making serious investments to improve the efficiency of their stores.

- Starbucks is innovating—they've already got 15% of the market for K-cups.

- The price of coffee has come down more than 30% from its highs earlier this year. "What was once a major headwind is now a major tailwind."

- Starbucks is attempting to leverage the public's passion for tea through their acquisition of Teavana

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If there's one takeaway for investors, perhaps it's this. "I tell all our people to stay humble and be hungry – we are a performance driven company through the lens of humanity," Schultz said.

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