Cramer's 'Mad Money' Recap: Cheap Eats

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When the economy slows down, high-end retailers such as Whole Foods Market (WFMI Quote), Nordstrom (JWN Quote), Coach (COH Quote) and Tiffany (TIF Quote) continue to do well because the rich keep spending, said Jim Cramer Friday on his "Mad Money" TV show.

The "very low" end also works, he said, and the "absolute bottom of the barrel is SPAM," which is made by Hormel Foods (HRL Quote). "I think it's a buy right here," he said.

Cramer likes Hormel because people tend to buy cheaper food when the economy isn't doing well, and "Hormel is the best of breed when it comes to low-quality meat." Additionally, there is a turkey shortage, said Cramer, and Hormel should benefit from higher prices for its turkey products.

Cramer said Hormel isn't a bad company just because it sells cheaper meats. It is a "good company that fills an important niche." Boding well for Hormel is the fact that ConAgra Foods (CAG Quote) recently reported good results, said Cramer, and if ConAgra can do well, Hormel should "put them to shame" because Hormel is a much better-run company, he said.

Cramer also believes Dollar General (DG Quote), a budget retailer, should start doing well.

Among restaurants, Cramer likes McDonald's (MCD Quote) as a low-end play and because of its plan to spin off its Chipotle restaurants.

Cramer also likes Darden Restaurants (DRI Quote) and Brinker International (EAT Quote). And, he's not giving up on high-end restaurant play Ruth's Chris Steak House (RUTH Quote).

Playing Hurricanes' Chemical Reactions

Cramer said he's bullish on NL Industries (NL Quote), whose subsidiary, Kronos, makes titanium dioxide, an ingredient in paint and toothpaste.

Titanium dioxide is in short supply after Hurricane Katrina hit DuPont's (DD Quote) titanium dioxide plant, knocking out 5% of the world's supply until at least early 2006. Cramer expects NL Industries to benefit from price increases.