When stocks are left for dead by the markets, Cramer's Stock Investigation, or CSI, unit is on the case, looking for clues as to what happened and whether there's anything investors can do about it. Tonight, he looked at the restaurant stocks of Red Robin Gourmet Burgers (RRGB) , Bloomin' Brands (BLMN) , Noodles & Company (NDLS) , Potbelly (PBPB) and Chuy's (CHUY) , all of which were victims of a market hit-and-run.
Cramer said all five of these stocks had one thing in common -- they were all much-hyped growth stories touted to be the next Chipotle Mexican Grill (CMG) . Unfortunately, when managements stumble, the value investors head for the exits in droves.
Red Robin shares doubled in 2013, but after growth stalled shares have plummeted 30% so far in 2014. Cramer called the chain's most recent quarter a huge disappointment and said investors need to stay far away.Noodles & Company had a much-hyped IPO in June of last year but has been declining ever since, with the company posting a nasty earnings miss with declining same-store sales. Similar story with Potbelly, with that stock being cut to pieces and still having a outrageously high multiple, Cramer noted. Chuy's is also following the same pattern, said Cramer -- the company is focused on opening new stores while the existing ones are floundering through mismanagement. Finally, there's Bloomin' Brands, purveyors of Outback Steakhouse and four other chains. Cramer said this stock is also down 32% this year. Its growth has stalled and management struggles to right the ship. He advised investors to steer clear of all of these stocks because their shares have not yet found a bottom.