Jim Cramer's Top Takeaways: Domino's, Campbell Soup, Snap-On
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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.
Domino's Pizza (DPZ) - Get Report : In a "Mad Money" exclusive, Cramer checked in with Patrick Doyle, president and CEO of Domino's Pizza, the
pizza chain that blew away the estimates with a 4-cents-a-share earnings beat on better-than-expected revenue with a 9.7% increase in domestic same-store sales. Today's earnings were a major improvement from last quarter's lackluster sales, enough to send shares up 5.6% to new all-time highs.
Doyle was upbeat about the Domino's loyalty program, which he said was having a meaningful impact on orders and the frequency of orders from customers. Also adding to the excitement is Domino's new "no-click" app, where customers just need to open the app and it will automatically place your favorite order unless you tell it not to.
When asked about rising labor costs, Doyle say he sees that as a good thing as it means the economy is heating up and demand is growing.
Outside of the U.S., Doyle was bullish on both Germany and India, the latter being Domino's largest market outside of the U.S.
Cramer remains a buyer of Domino's.
Campbell Soup (CPB) - Get Report : In his second exclusive interview, Cramer sat down with Denise Morrison, president and CEO of Campbell Soup, the food giant that's rapidly transforming into a natural and organic powerhouse with shares that are up 20% so far this year.
Morrison explained that Campbell's purpose is to provide real food that matters and she's very pleased with the team she's built to execute that mission. She added that Campbell believes real food has roots, is made with care and is safe and affordable without compromises.
With consumer preferences changing rapidly, Morrison said Campbell is up to the challenge, both strengthening its core brands but also expanding into faster-growing ones while embracing new models of innovation. The company is also hot on the acquisition trail, keeping a close eye on the multitude of smaller brands that are winning with customers.
The Millennial generation lives different and shops different, Morrison said, and that's why vegetables and whole grains are becoming the future of food in America.
Snap-On (SNA) - Get Report : For his third interview, Cramer also welcomed Nick Pinchuk, chairman, president and CEO of Snap-On, the tool maker that delivered a 13-cents-a-share earnings beat, but saw its shares fall 3.4% as Wall Street critiqued the company's financing arm.
Pinchuk said that Snap-On's automotive business was very strong this quarter, with tools up 5%. The industrial segment, however, was challenged by a decline in military spending. As for that financing arm, Pinchuk said Snap-On has been in finance for 50 years and financing is a strategic arm of the company.
While it's true the amount of money Snap-On is lending has increased, Pinchuk noted the delinquency rate has remained the same. As the company moves into more high-ticket items such as diagnostic tools, it only makes sense that the amount being financed would increase as well.
As for Snap-On's growth potential, Pinchuk noted that as self-driving cars emerge on the scene, they will require greater and great precision to operate properly. The only way to get greater precision is with more precise tools.
Cramer called today's decline in Snap-On's stock a rare blip for a great company
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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.