This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Thank You, Corporate America

CSI: Cramer

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.

Executive Decision: Mark Trudeau

In his second "Executive Decision" segment, Cramer sat down with Mark Trudeau, president and CEO of Mallinckrodt Pharmaceuticals (MNK) , a fast-growing biotech located in the much-sought-after domicile of Ireland.

Trudeau explained that Mallinckrodt has always been an Irish company since its creation in 2009. While that affords the company some advantages, the focus continues to be on creating value to patients.

Trudeau continued that Mallinckrodt is always on the lookout for companies that offer a good strategic fit to what it is doing internally. He said the company's two most recent acquisitions -- Cadence and Questcor Pharmaceuticals -- were two such deals that will offer long-term benefits for patients and shareholders alike.

When asked about the controversy surrounding the acquisition of the drug Acthar, Trudeau explained that Acthar is available for 19 indications and is usually a drug of last resort when others have failed. So he's not worried, as some are, that insurance reimbursements may diminish over time.

Read More: Galena Fires CEO Ahn, Offers No Parting Gifts

Cramer said Mallinckrodt remains a well-run company with a terrific outlook for growth.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs