Cramer's 'Mad Money' Recap: Denny's Does Right

Click here for an archive of Cramer's "Mad Money" recaps.

---

There's been a major turnaround going on at Denny's (DENN Quote), and it should continue, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

However, the market does not see what is happening with Denny's because, as Cramer says in his new book Jim Cramer's Mad Money: Watch TV, Get Rich, most Wall Street investors are "snobs."

"They don't understand what's going on at these restaurants," he said. For a long time, Denny's has been "saddled" with credit card debt, but it has been selling off its restaurants and turning to a franchise-based business model to get rid of its debt, Cramer said.

When Denny's CEO Nelson Marchioli appeared on the show last month, he said the company was in the midst of refinancing the balance of its debt and also stated that they would be successful in this quarter.

Further, Marchioli said that Denny's would do this without selling 21 of its stores, Cramer said.

"Denny's has become a strong enough company that it doesn't need to sell off 21 stores to get out of its debt," he said. "The business has improved," and Denny's has an "amazing" opportunity to refinance at low rates, which is a "big deal."

Cramer advised his viewers to buy Denny's, but to use limit orders when doing so. If not, "you will get ripped off," as it is a small-cap stock," he said.