Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan
Appetite for Restaurant Stocks?
There are two kinds of investors buying into the restaurant stocks, Cramer told viewers, those looking for yield and those looking for for growth.
That explains how a stock like McDonald's (MCD) could post a 2.5% decline in global same-store sales and not have its shares fall off a cliff, Cramer said. McDonald's has a 3.5% yield.
But when it comes to growth, customers are increasingly choosing healthy and organic options, which explains why the best same-store sales comes from Chipotle Mexican Grill (CMG), a chain that is practically waging war on everything McDonald's sells.Other growth in the group is coming from anything Mexican, Cramer continued, as evidenced by Fiesta Restaurant Group (FRGI), El Pollo Loco (LOCO) and the Mexican offerings from Jack in the Box (JACK), all of which also offer fresh and organic options when compared to the flailing Taco Bell, part of Yum! Brands (YUM). Both of these investment themes are working, Cramer concluded. But make no mistake, they're working for completely different reasons.
Chart Week FinaleFor the finale of "Chart Week," Cramer sat down with colleague Carolyn Boroden, the "Fibonacci Queen," to discuss the concepts of symmetry and measured moves using several companies' weekly stock charts. Boroden explained that when she looks at a chart she'll often find the same size price movements over and over again, called symmetry. Add that to moves that happen over the same duration and you have measured moves. That's why the weekly chart of Celgene (CELG) shows the same $20 decline in 2009 that it does now, and why Boroden thinks the stock will now hit $90 a share. Boroden was also bullish on Amgen (AMGN), which has seen several declines equal in price and time since 2007. The stock's most recent decline could see a snap back to $134 a share, Boroden said. Boroden also noted similar moves in stocks such as Exxon Mobil (XOM), Schlumberger (SLB) and General Mills (GIS). In each case, the stock repeats the same pattern over and over again. Read More: Cliffs Natural Resources Top Brass Cash In as Activists Take Over Boroden concluded with a Cramer fave, Buffalo Wild Wings (BWLD), which has currently seen a decline that matches its prior moves. Boroden said if shares hold at these levels, she'd be a buyer.
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