Cramer: What Starbucks earnings say about China

Cramer: What Starbucks earnings say about China·CNBC
Fred Imbert
Updated
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Starbucks (NASDAQ: SBUX) investors are worried that coffee consumption may be weakening in China, weighing on the stock, CNBC's Jim Cramer said Friday.

Shares of the coffee giant were down about 0.8 percent in midmorning trading, despite Starbucks' better-than-expected quarterly earnings results.


Earnings per share for its fiscal first quarter came in at 46 cents, on revenue of $5.37 billion.

"China comp sales had been at 6 [percent]," Cramer said on " Squawk on the Street ." "It's decelerated to 5 [percent]."

"I think what people are saying is 'look, I don't care about your long-term view that China is on a tear; that you opened 151 stores in the quarter; I don't care about that. What I care about is maybe the weakness in China is bleeding into coffee. 'That is the central issue about why the stock is down."

DISCLOSURE: Cramer's trust owned Starbucks shares when this article was published.



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