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Texas Roadhouse (TXRH Quote) and Jack in the Box (JBX Quote) are the two kings of the casual dining space, Jim Cramer told viewers of his "Mad Money" TV show Thursday. On Wednesday, Darden Restaurants (DRI Quote) and Wendy's (WEN Quote) were both upgraded, he said. The upgrading of both of these stocks, which were both near their 52-week highs on Wednesday, tells Cramer that the consumer is far from being dead and is "eating his head off." So, Cramer said he's devoting this show to food stocks, which can make people money.
The low-end consumer has more money in his pocket, as he's not paying too much for gas, Cramer said. As a result, many restaurants have been doing well, Cramer said, adding that the next Wendy's and Darden are Texas Roadhouse and Jack in the Box.
Texas Roadhouse has two things going for it: A great concept with everything being roadhouse-themed, and it's really cheap, Cramer said. And in addition to the fact that Texas Roadhouse wants to put its restaurants everywhere in the eastern U.S., the company's estimates are low, and its negativity has been priced into the stock, he said.
"Texas Roadhouse shouldn't go down any more," Cramer said. "It is a long-term story."
He suggested buying it during weakness and keeping it for a long time.
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