Starbucks Stock Eyes $120 As Jim Cramer Backs Turnaround

Starbucks is making serious waves on Wall Street after delivering an earnings report that beat expectations across nearly every major financial metric. The coffee giant posted an adjusted third quarter profit of $0.85 per share, which marks a stunning 70 percent jump compared to last year. Revenue held steady at $9.3 billion while global comparable store sales grew by nearly 8 percent.

Following the strong numbers, television personality Jim Cramer interviewed Chief Executive Officer Brian Niccol and raised his price target for the stock to $120 from $115. Cramer pointed to the recent quarter as a major turning point for the company. Shares jumped more than 3 percent on Thursday to trade around $107, bringing the stock close to its 52 week closing high.

Much of the momentum comes from new leadership strategies, including store remodels and simplified international operations. Starbucks now plans to upgrade 1,500 locations by the end of the fiscal year. Investors are watching closely to see if these North American margin gains and cost cutting measures will hold strong over the coming months.