Put Your Chips on Beans
"Burritos are the new pizza," Cramer told viewers. As such, it's time to look into
Chipotle (CMG Quote - Cramer on CMG - Stock Picks) and
Jack in the Box (JBX Quote - Cramer on JBX - Stock Picks), he said.
At first, Cramer thought the down sales in pizza were because of an isolated problem at
Domino's Pizza (DPZ Quote - Cramer on DPZ - Stock Picks), but then best-of-breed
Papa John's (PZZA Quote - Cramer on PZZA - Stock Picks) also "blew up" this week.
Papa John's got its "head cut off" because of a "stunning decline" in same-store sales, he said. Although the company is claming it's a store-expansion problem, he said it's hard to believe.
As
Yum! Brands' (YUM Quote - Cramer on YUM - Stock Picks) Pizza Hut same-store sales have also decreased, Cramer has reason to believe the whole pizza industry is falling, he said.
However, a way to make money off the decline in pizza sales is by figuring out what people are eating instead of pizza. After much digging, he found it was the burrito.
"People are heading out of Papa John's and into Taco John's," Cramer said. "Sadly, Taco John's is not publicly traded, but Chipotle and Jack in the Box are."
While Cramer hasn't recently liked Chipotle, this new information about burritos is starting to sway his opinion about it, he said.
He said he always thought Chipotle was expensive. But now that its price is coming down, its sales are up and burritos are popular, Cramer said he's bullish on Chipotle, although he wants people to wait for it to get a little cheaper before buying it.
Jack in the Box, however, is not done going up, he said.
Although burritos will never replace pizza, Cramer believes market players can make some money on burrito stocks right now.
TheStreet.com Staff
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