Rocket Fuel's conference call was "just miserable," said Jim Cramer, co-manager of the Action Alerts PLUS portfolio, during CNBC's "Mad Dash" segment. Management had very little visibility into its business, which is never a good sign, he added. The stock has been hammered relentlessly over the past 52 weeks, down about 80%.
Despite growing revenue 63% year over year, the results fell short of analysts' expectations. Guidance for the next quarter was also disappointing.
Noodles & Company NDLS and Rocket Fuel FUEL data by YCharts
Noodles also hosted "one of the more disappointing conference calls," Cramer said.
While other restaurants including Denny's Corp. (DENN) , Fiesta Restaurant Group (FRGI) and Bloomin' Brands (BLMN) seem to be doing fine, Noodles is clearly struggling. The company missed on revenue estimates and reported comparable-store sales of just 1.3%.
Management said it didn't promote enough, but Cramer said it's a lack of execution and the fact that Noodles doesn't have the right product for the consumer.
--Written by Bret Kenwell
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.