Delivering on Promises
In the "Executive Decision" segment, Cramer spoke with Stephen Holmes, chairman and CEO of Wyndham Worldwide (WYN), which not only delivered spectacular earnings but also boosted its dividend by 53%, a move which sent shares up 6.1%. Wyndham operates 7,200 hotels under 15 different brands and is also the number one vacation timeshare company in the U.S.
Holmes said he's confident in his company and confident in its future, as Wyndham continue to build momentum for shareholders. He said that Wyndham is still a relatively new company, having had its IPO just five years ago, but it's building a track record of delivering on its promises. In addition to its hotel and timeshare business, Holmes also noted RoomKey.com, one of Wyndham's online properties that allows customers to access multiple hotel properties all at once and get the best possible prices.
When asked about its diverse mix of businesses, Holmes said that Wyndham does indeed have a great group of businesses, but they're not looking to breakup or spin off any at the moment. He said the business mix has allowed Wyndham to only have 15% of revenues come from Europe, for example, which helps it deliver consistent results.Finally, when asked about the U.S. consumer, Holmes said that the U.S. customers seem to be feeling better about the economy. He said that his hotels are fuller and patrons seem to be in a better state of mind. Cramer said the Wyndham is still a relatively unknown company on Wall Street, but should be one in investors' portfolios.
More Than Chicken WingsIn the "Executive Decision" segment, Cramer spoke with Sally Smith, president and CEO of Buffalo Wild Wings (BWLD), the beer and wings purveyor that delivered a six-cent-a-share earnings beat on a 34% pop in revenues, all in the face of higher chicken wing prices and doubtful analysts. Smith said that she tries to convey to analysts that the price of chicken wings does not make or break the company, and indeed some do understand that wings are just one facet of the business. She said that while wings used to account for 40% of sales, that number is now closer to just 20%. "We manage a whole basket of commodities," said Smith, as well as construction costs, management training and technology upgrades. When asked about growth opportunities, Smith said that Wild Wings currently has two locations in U.S. airports, both of which are doing well. She said there may be 60 to 75 other airport locations that might also be a perfect fit for the company. Smith also noted that Wild Wings is focusing on smaller towns that lack a wide variety of dining options as well as colleges throughout the country. "Every campus could have a Buffalo Wild Wings close by," Smith added. Turning to some of the company's other initiatives, Smith said that Wild Wings has over 6 million followers on Facebook and is actively participating with their customers. The company also focused in 2011 on upgrading its beer selection, a segment that provided excellent revenues for the company. Cramer said that it is possible for analysts and investors to be too skeptical about a company. He said that Smith has the situation under control and this is one stock that is not done going higher.
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