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

Even though McGraw Hill is the publisher of BusinessWeek, "it is the only media play that isn't really a media play," Cramer said.

Instead, "it's more like a private-equity play" because every time there is a private-equity deal, it is financed with bonds that all need to be rated by Standard & Poor's, which is owned by McGraw Hill.

"It is a real company, with real growth, real profits and real dividends," he said. "The AG Edwards downgrade was wrong."

Sell Block

Cramer dedicated his "Sell Block" segment to Wal-Mart (WMT - Cramer's Take - Stockpickr), urging investors to sell this stock "six ways from Sunday."

The reason behind the discount retailer's bad numbers is the "shutdown of the immigrant buyer," Cramer said. He added that a new six-point ID verification program adopted by the state of New Jersey makes it extremely difficult for this population especially to renew their licenses and, therefore, go shopping.

"This is the death of the underground economy and, ultimately, the death of Wal-Mart," Cramer said, acknowledging that he was broaching a sensitive subject.

"If a liberal state like New Jersey is cracking down like this, you can only imagine what other states are doing."

This means basically that illegal immigrants will no longer be able to drive or get their drivers licenses, he said. And the stores' remote locations are too far for consumers to walk to.

"No car, no Wal-Mart," Cramer said. Because immigrants are a large part of Wal-Mart's consumer base, he believes that Wal-Mart is in trouble.

It is not coming back, not just because it is a bad retail store, but because of the six-point ID verification program, Cramer said.

Pizza Party

Cramer welcomed Rick Rosenfield, the co-founder, co-CEO and co-chairman of California Pizza Kitchen (CPKI - Cramer's Take - Stockpickr) to the show and asked him to alleviate some worry related to his company's stock.

"We did have some slippage, but I haven't seen much of a downgrade," Rosenfield responded. "Our investors and analysts have stood by us. The fundamentals of our business are great, and most important, the new restaurants that we're opening are achieving the highest profitability and highest volumes of any restaurants we've opened."

"We feel great about the long run," he went on to say.

When Cramer asked Rosenfield to explain to the viewers what slippage is, the CEO said it's not about training the staff.

"It's bureaucracy ... it often ties to a new mall opening, or a new life center opening," Rosenfield explained. "The bureaucracy comes out, and we don't get our permits. Or the malls don't get permits, and we're sitting dead in the water. It adds up ... and it's out of our control," he said.