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