Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 5/2/24
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that's what the bulls have to do going into tomorrow's non-farm labor report we're so obsessed with what the big picture data might mean to the fed that it even controls the action during the single most important week of the earnings calendar portion today went our way with the down gaining for twenty two points that's a big climb point nine one percent and that's like jumping one point five one percent but I think that's because we could breathe a sigh of relief that the Fed meeting was now behind us or else we would have gone up why don't we have to hope that tomorrow we'll bring a weak employment number with fewer jobs added more modest wage growth because if today's beautiful absence of what we call macro numbers the Fed obsession will start anew should they have left the door open for a should we have a single cut it's all we talk about think about what happened yesterday let's start with the AM before the Fed meeting broke up we had a not so up market it was pretty ugly why not earnings no we were down because people worried the Fed chief Jay Powell might lower the boom on the stock market by saying something hawkish you might need a kitty favors raising rates not cutting them this new narrative alone is an incredible thing we're once again hostage everyone's worries about the fed which is another way of saying everyone's worries about inflation there have been some moments where we see a consumer price index number that's boosted by one or two items and it makes for a whole overpowering wave of pessimism takes down everything doesn't matter if that thing is just insurance or utilities or rent or food whatever line item impacts the CPI it's going to drive down a stock like Microsoft largest company on earth to ridiculous in low levels right before it reported one of the best quarters I've ever seen it actually it actually reversed all that gain every day practically every stock is caught up in this weird notion where we hang on every piece of macro data every public statement by a major Fed official regardless whether the company itself underneath the stock is impacted even when Apple reports a better than expected set of numbers there for the close like it did tonight set the stock higher and after hours trading I have no idea how low and that can last if we get an overheated employment reading tomorrow at 830 Wall Street was terrified that Apple iPhone sales would collapse especially in China and while they weren't great down 10% it could have been a heck of a lot worse hey it doesn't hurt to see your Tim Cook predicted a return to revenue growth in the current quarter along with an additional 110 billion dollar buyback authorization I think there's a lot to like here you know I say oh and it don't trade it but that only matters on days where the big picture data let it matter if it is up as big tomorrow as it is in the after hours now it will only be because the non-farm payroll number was a cool one oh I hate this dynamic because it makes us feel like companies have no control of their own destiny and we don't have any control of our own portfolio every year everything seems hostage to which macro numbers the Fed really cares about and we keep hearing that they care about this one this one this one that one tomorrow we get the all-important way report and if your bullish one stocks you actually need to show that lower wage inflation and less job creation are here because that's what will allow the Fed to cut rates and that is what this market is about nobody like this kind of market no no I've never seen anything like this let me give you a real life example what I'm talking about and why a lot of people are parking their money in two-year treasuries with yield almost five percent because it makes sense I want you to compare that to Amazon I follow Amazon like a hawk I like to say that I that I know Amazon better than most people on Wall Street possibly including the analysts who solely focus on this one company Amazon has dozens of data points that go into the quarterly report but there are a couple that really matter one is the growth rate of Amazon web services it had been decelerating for some time and that was beginning to impact the earnings they told us things could get better I know I fought them on this because I was really worried but management presented evidence that my view is wrong they turned out to be right Amazon web services once get growing like crazy that's so important just lucrative very lucrative the second issue was the seemingly endless losses in Amazon's international business next thing you know it's actually probable third we need to see the price of taxes keep coming down while we got our preponderance the same gave fulfillment you know what we got what we wanted three key metrics three home runs but Amazon had the misfortune reporting again for the Fed's press covers so those blowout numbers ended up meeting very little the share price yesterday Amazon's stealth performance was a nothing burger until Wall Street got over his worries about Jay Powell's next move today once we're past the big bad event of the Fed so Amazon could rally more than three percent and you know what how long that's gonna last until the employment number tomorrow now the Fed meetings always been an important event but the constant obsession about it is a new thing some of it's the fault of the Fed in a this kind of bit for transparency they've created a monster Jay Powell doesn't need to hold a Q&A session after every meeting he's chosen to be like the flying well wedding is doing a high wire act without a net that's an extremely risky maneuver that he has chosen Jay didn't need to say that we're good we're perhaps done raising interest rates last year think of it employment's incredibly strong as long as we have strong employment the Fed had no business taking more hikes off the table power's so fixated and all sorts of data points but all each instrument thinking about was employment because the incredibly robust job market is the whole reason why we have inflation in the first place people without jobs are a lot less likely to spend or or buy cars or homes less spending is what allows prices to come down I wish there were a better way to do it but the only way the Fed beats inflation is by causing unemployment our best inflation fighters now have nothing to do with the government they're the big providers of goods Walmart Costco Amazon with the latter actually being shunned by federal regulators because the Biden administration is reflexively skeptical of any business that they see as being too big amazing without any help from our elected leaders all we can do is accept our fate from one tool the Fed funds rate to control inflation which brings me back to rooting against the American economy if our sole tool to combat inflation is the federal funds rate which is set by committee of people who often disagree with each other in public people who can't seem to keep their mouth shut then the whole stock market ends up being a plaything for people who want to make bets on the Fed's next move or to put it out of the way we all know that every single point gain today can be wiped out by the wrong employment number tomorrow and right now wrong means stronger than expected it's absurd it's the opposite of a stock figures market I remember at one time when stocks traded on the basis of how the underlying companies actually did then we started considering their sector more in the old day sector only controlled 50 percent of the action to give in stock then so much investment became passive investment coming in the market via index funds that the estimate 500 became the most important portion of the value of a stock with sector second actual performance becoming third now because the s&p's price direction is determined by the Fed then an individual stock prices are often determined by the Fed too and everything else is subservient to it which means if the economy weakens your stock regardless of its sensitivity the economy goes higher i'm sorry but you know nothing bottom line we often get bad news is good news moments at this point in the in the business cycle but it's really as excessive as has been lately i wish the market didn't work this way but that's the reality and it's why you need to bet against the US economy tomorrow if you're hoping for higher stock prices let's go to max in Missouri max hi Jim max what's up we all appreciate everything you do for us thank you i'm in a major house of pain on a company you've basically been in the hold camp on even suggesting at one point they were a potential takeover candidate for the mid to long term what is your outlook for etsy okay etsy's executing not well i i say that because when you read the conference call they tell you they're not executing well and it is difficult for me to figure out what they can do i have been a backer of etsy i think it is a good company but i just don't know how they can fix the darn thing um it's got great customers it's got great loyalty but it's just not working and i don't know what to do other than to say that i still like it but i have been wrong in liking it i believe it's a good company and i don't know how to fix it let's go to DJ in Colorado DJ hey Jim i'd like to send out a huge yeah very interesting very interesting all right what's up hey Jim i've always loved your wit and your spontaneity as well as your obscure literary and cultural references true and the way you stump the guys in the morning show which is why i want to ask you about fg soil and green no just kidding uh it's not going to ask you about has one of the lowest p e ratios of all the energy stocks at just below eight with a forward p e of just above nine which also makes it much lower than uh so many of these uh tech stocks with crazy valuations uh the stocks had a little bit of a pullback lately and could be a good reentry point uh the stock is v l o valero yeah how to pull back the finishing marathon p had one too uh i think you're right i think it is an interesting level to do it they're going to make a ton of money uh people feel it's just a obviously just a commodity i understand that but i do think you have a winner there and i would buy it let's go to robert in new york robert jim jim jim what can i say i haven't spoken to you in a while because you've made me so much money that i've just been relaxing a little bit here and there but i'm ready and i'm i you have what you have done for people is incredible and you have thank you thank you i mean i want everybody out there in cremerica to realize that when you said pull i remember exactly what you said about ai and you said pull it all up and you were dead on you were not wrong you were a hundred percent on the mark thank you buddy thank you i really appreciate that thank you thank you anyway jim last quarter this company reported 648 billion in revenue in line with analyst estimates although statutory EPS of a dollar 91 beat estimates being 5.6 higher than what the analyst expected they're closing 160 of their village mv clinics which they invested over 5.2 billion dollars this company is wal-mart um look they made the the tough decision it was the right decision unlike so many other companies they're they are not afraid they've made a mistake i really value that it's one of the reasons why i think wal-mart is a very strong and solid buy if we didn't own Costco for my travel trust people know that i would own wal-mart okay look it's a bad news is good news moment the business cycle why hate moving against the u.s economy it's what the bulls must do going into tomorrow's job report oh may have been a tonight breaker the company behind chilis and magiano's hit a 52 week high earlier today we're pulling back into the close but given that the companies in the tough sector should you consider nibbling at the stock still i'm checking with the CEO and biking came public yesterday in the marty's IP of the year so do i think the stock can continue to sail higher i'm going to give you my take and draft teams are pouring into the bell and i've got the poster he's exclusive with the company stock brand so stay with cramer don't miss a second of mad money follow at shim cramer on x have a question tweet cramer hashtag mad mentions send jim an email to madmoney@cnbc.com or give us a call at 1 800 743 CNBC miss something head to madmoney.cnbc.com fact running a business is not getting easier on your wallet with higher expenses on materials employees distribution and borrowing everything costs more also a fact smart businesses are reducing costs and headaches by graduating to net suite by oracle net suite is the number one cloud financial system bringing accounting financial management inventory and hr into one platform and one source of truth with net suite you reduce it cost because net suite lives in the cloud with no hardware 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especially chilies and that's why this doctor nearly eight percent on Tuesday this is up now 25 percent for the year that is fantastically we gotta ask can it keep it up and that's why we're checking in with kevin hotmies the presidency of brink international to get a better sense of the quarter and i am so excited about the story they're talking welcome back to man buddy hey jean thanks for having me on the show uh we're super excited about the future on this brand well look i've got to ask you right now kevin you've got the this big smasher burger you've got an incredible deal and i see unlike what people may understand in the analyst world that you were number one trending on twitter when you announced this that's not the breaker of old you know it's exciting so you know there's this whole dialogue going on right now about fast food prices and so we decided to jump in the fray so this is the actual big smasher if you can see that this is almost a half pound burger it's got thousand island dressing lettuce cheese pickled onions on a brioche bun comes with fries wait there's more it also comes with chips and salsa and you get a bottomless drink and it's just 10.99 you don't think that you know we keep talking about it's unbeatable in the industry we're now bringing new news to that lineup the three for me lineup at 10.99 and we think that we're going to have a big winner on our hands well you know what's interesting i'm listening to and i'm thinking why is there this sense that you either have to be for the rich or for the not rich how about for that everybody and i know chipotle feels that way and obviously you feel that way the price point that you're talking says to me rich poor middle class whatever i like the buzz i like the taste i want to go to chillies well there's two things i'll tell you that on gents so one is um you're actually right i think the the folks that are going to win in this economy are the ones that meet all the customer needs not just one end or the other end and so you know for example we call it the barbell strategy and margaritas right now so we've got a six dollar a watermelon Tito spritz margarita and this comes with Tito's vodka luso tequila triple sec our fresh sour mix and obviously watermelon and it's it's a humongous drink i mean we look at that thing it's just six dollars and then if you want something a little smoother you know we've got the hottest drink in america right now the casa meagos margarita are sorry martini and this retails for probably around 12 dollars so that's for a guess at once something a little smoother casa meagos it's a little more expensive but that's the point we're winning with all uh demographics right now and all income segments and we think that we can continue to deliver for everybody everybody wants great food everyone's great service everybody wants great value we're going to continue to win market share are you ready for sanctity mile on sunday will you be able to handle the crowds well absolutely you know it's been interesting um as we've as we've kind of really gotten a lot stronger from a customer experience standpoint and winning with our customers we're seeing on those holidays they're getting busier and busier so we think that that sanctity mile could be a huge huge day for us and we're going to be ready for it you know whether it's with our chips and salsa our cold beer or obviously our our delicious margaritas now i am uh kind of an awe of something that you're doing you're still tv for ads but at the same time for instance we put we posted something when you were on and you were our biggest instagram hit that we've had there is something going on you mentioned that you reference it in your conference call it seemed like people lost over it they shouldn't it's your buzz factor tell us about having a buzz factor for choice yeah you know obviously tv is still going to be the number one way you drive awareness really quickly and we've certainly gotten back into that in a big way we've got some amazing ads going on or the big smash here right now which really shows that incredible value versus what you can get in fat food but you're also going to also have to have a big presence in digital and so you know our social uh our social media marketers led by george phillips and his team they're doing an incredible job we're getting into that social media discussion that conversation and that's why we saw you know that number one trending thing on twitter for our new three for me offer with the big smasher we're certainly seeing more and more engagement with our with our with our fan base and i think you got to do both right you got to have you know that top of mind awareness on tv with that you would kind of bigger dollars and then you got to make sure that you're connecting with your guests on social media and when you have you know deals like the 10993 for me you know it's going to be pretty easy to get chatter now i want to talk about it i hear what you're saying and i like the simple nature of it and i know when you came in you made a point of making sure that there was simplification i was dealing earlier in the week no need to mention the name but with a large coffee company that is making more and more and more different kinds of items and i'm beginning to think that you have to be from a computer scientist from stanford to be a barista that is not the way it works at breaker does it that's exactly right jim you know since i started two years ago we've limited over 20 percent of our menu why do our restaurants don't do that is because you're afraid of losing sales we've grown our sales quite a bit you know i was just talking with our vpo's here in lexical gente we're having a joint business meeting and we've grown over a half a billion dollars of sales you know in the last two years i mean that's a pretty impressive number for a company our size and we've been able to do that while cutting the menu and what's happening right now is our guest experience metrics and growing up and because of that we've got more repeat customers and then we're going to continue to simplify we probably don't have to trim the menu as much but even prep steps can be simplified so we have a new chicken sandwich that actually just came out with our menu drop a few days ago we've eliminated the pounding of the sandwich that pounding is like the worst job for a team member in the heart of house to do and that chicken sandwich is juicier it's plumper and it's more delicious and that's also our 1099s veal and then another one is we got rid of our thin lunch patty hamburger which was a double burger it was only 7.2 ounces we now have 7.5 ounces going to the normal patty one less thing to cook one less thing to manage one less thing to order and you know what when you make things simpler you get a whole much we get much better consistency but the most important thing is you have team members that are happier and you've got guests that are happier and that's what's happening here at braver it is not hard to understand complexity is the enemy simplicity is the friend i want to thank kevin hawk when president seo of breakeven national the best performer in this group for coming on and i hope you have a great second a mile thank you to you too absolutely great to talk you get me a nice back in for the break coming up a Viking never sailed with this much style anchors away on this week's big IPO next take your business further with the smart and flexible american express business gold card it's packed with benefits to help unlock more value from your business purchases that's the powerful backing of american express learn more at american express dot com slash business gold card you you may not have noticed because everyone was so focused on the fed much my shagrin but yesterday we got the biggest IPO of the year when Viking holdings the parent Viking cruisers came public i think it's one's intriguing is a good option in a strong industry it doesn't have a lot of major players remember i like the cruise lines because the post covid travel room has proven to be remarkably durable resilient in fact cruise bookings have been excellent in part because it's the value conscious way to go on vacation remember people are really interested in the new reality here the only problem is that real credit inquiry on the region cruise line holdings the only three publicly trading cruise lines pure place for this IPO it's had huge runs last year the bar's already said hi how high up well when the region cruise reporter mostly strong quarter with modestly weekly expected revenue i was shocked to see the stock down 15 yesterday at this point only real equipment is sloped for the year so maybe it might be worth swapping into Viking as its stock has not got a chance to get overheated but why don't you listen to it make a decision if you're in the royal this is a pretty popular brand Viking but if you don't know Viking they're all about smaller ships so juries accommodations destination focused routes lots of river cruisers in europe although they started expanding into ocean movements about nine years ago then in 2022 Viking started offering expedition experiences so smart like taking people to Antarctica different kind of vacation today the company has a fleet of 92 vessels 24 new ships on order options for 12 more not to mention routes that span all seven continents and all five oceans i bet you didn't know there were five oceans what says this one apart from the other cruise lines and it's an IPO perspective Viking says pointedly Emily quote we do not try to be all things to all people and quotes are no casinos and Viking boats no children either and all cruises offer single language experience by avoiding quote features that are unnecessary for targeting customers end quote the company says it can offer quote a superior product and competitive prices end quote it's now the only pure play luxury cruise line that's publicly traded i like that now Viking points to the continent's traveler readers choice awards from last october where was the top rated cruise line in the river ocean and its expedition to categories which is the first time anyone brand ranked at the top of all three categories i got to say i follow those rankings really closely and i've actually made decisions based on that magazine so this is not idle others are clearly done the same while Vikings a smaller operator is very good at finding a specific niche in and dominating it for example they're the number one player by far in the north american outbound river market 51 percent share nobody else comes close so it's kind of good story what about the numbers last year Viking put up 48 percent revenue growth of the earnings before interest taxes appreciation and recession up a stunning 197 percent year over year and their margins are expanding like crazy imagine also gave some limited preliminary results for the first quarter of 2024 as you might expect Vikings growth is decelerating as we move further away from the pandemic okay but it's still growing nicely Vikings occupancy rate from 92.8 percent in the first quarter of last year to 94 percent in the first quarter this year pretty darn good passenger sales in sale increased by 13.6 percent at some time they're talking about 13 to 14 and a half percent revenue growth in the first quarter while the company normally loses money the first quarter their operating losses are shrinking substantially year over year and make no mistake Viking had a nice 818 million dollar operating population we're not talking about some fly-by and I'd spack here of course nothing's perfect Viking doesn't have the best balance sheet but you know what none of the publicly trading cruise lines have great balance sheets because it's a capital intensive industry plus Viking had the issue tons of debt in order to stay alive during the pandemic like the rest of them but when you compare their credit metrics to the rest of the industry Vikings balance sheet doesn't look particularly worrisome at all in fact compared to Carnival World Caribbean and Norwegian I'd argue it's got the healthiest balance sheet in the industry certainly it's got the lowest debt to equity ratio by far so I like the story I like the numbers what about the stock is it worth buying here and it's not here where what's the thing actually worth okay Vikings IPO was upsized from the original 53 million shares to 64 million shares instead high demand it priced at 24 towards the high end of the most price range yesterday stock open for trading at $26.15 closed just below that level $26.10 I like that see and that I added another 3.4% to 27 and 27 I don't like them too high at these levels Viking has a market capization close to 12 billion enterprise value of more than 15 billion when you include the net debt on the balance sheet now go up with evaluation here we need to make some assumptions into a little back in the envelope math figure out how much money these guys can make let's start with these assumptions first Viking says they're likely to put up 13 and 14 percent revenue growth first quarter as I sold it we'll use the low end of that range to be concerned okay we'll go with the 13 then project that out for the full year on top of that let's assume that flat EBITDA margin as I mentioned the EBITDA before which translates to adopt a 1.23 billion in earnings for interest taxes appreciation organization using that sketchy estimate Viking has an enterprise multiple of 12.4 is in egregious does represent a clear premium to the other cruise lines which all have high single digit enterprise multiples so by the way the enterprise multiple which is an enterprise value divided by EBITDA it's often the best way to value companies in capital intensive industries like cruise lines that don't lend themselves to pure EPS kind of thinking so does Viking deserve that premium multiple over its friends in the industry you know what I don't argue it does Viking's got a cleaner balance sheet then its peers differentiated brand caters exclusively high-end customer which I absolutely love premium is such a great place to be part of the business I expect to hold up better than the mass market set of things now I'm going to do something that I usually don't do I'm giving you my blessing to buy Viking right here that's right right here and that's even after it's been up for a couple days it's not wild up I like an IPO that comes here and opens here and then just does this that's kind of a my textbook Kramer IPO that works of course small position here maybe a pullback get bigger but I very again very rarely do this I'm saying Viking is a buy right now I want it to pull back until the value race is born in line with the rest of the industry which will be about 20 but after what happened with arm holdings where we only got in small I'm not going to make that mistake again six months later the from now the lock up insider will expire yet a chance to buy even more here's the bottom line even though Viking's somewhat hot starters made it stock more expensive than his cruise line peers I am willing to pay up for this one because I think it's going to be a winner it's my new favorite in a group that I have liked for ages and ages let's take calls let's go to Sam in New York Sam hey Jim Kramer how are you I am doing well Sam how about you good hey Boeing die or sell or hold well I'll tell you the good news about Boeing is that they've got this guy maulin cough who's in there trying to get the right guy okay the bad news is the shoes never stop dropping it's like a meldum market so that you can google that there's a lot of shoes you know Birkenstock factory I don't know and I just keep worrying that every time I say let's go buy it someone then you know the next day I pick up the paper and says well there's 17 nefarious people who are doing bad things of Boeing so I want to skip that I don't like that head right line risk so I'm going to tell you that while I do think that it's probably bottoming I don't think they know themselves where the bottom is Brenda in Virginia Brenda Booyah Jimmie chill Booyah the chillman in town Booyah I was wondering if you thought that paramount was a good buy at this level no no we're going to we're going to just say okay that that got a bid and there's probably maybe not going to be that much of a bidding war for it and we're done with PARA and it was nice to meet you okay even though Vikings hot start out of the gates has his trading in a premium to his peers I gotta tell you I'm willing to pay up here for this name I think it's a big winner much more made money including my post earnings is posted with draft case the draft Kings parlay interest in the NFL playoffs in a strong quarter I'm thinking the ways for the stock that I know you care about then we've been focused on just how tough it is to be in the restaurant business so I'm sharing how I sized up the companies in the space and listening to stocks I have my own and the ones I like and the ones I can't even fathom and of course oil calls back apart tonight so some of the lightning about so stay with Kramer back in March the hottest stocks in this market started rolling over including draft kicks the online sports book with the stock was born double last year rallying another 40% in 2024 before peak at $49 and changed in last March in the following weeks the stock pulled back to the high 30s although it's recovered to $43 as of today's close then drafting supported and showed us why it's stocks so why the first place these guys are in three cents per share else with over 70s 70s at loss I mean and they had much higher expected sales 53% year over year even better management raised in four-year forecast across the board which is why the stock's getting some lifting after hours still at several points away from its March peak it's still bouncing differently from with all time high set in 2021 so could it have more upside let's take a close look with Jason Roberts he's the co-founder chairman CEO of Draft Kinsler more about the quarter of what's next Mr. Roberts welcome back to me a bunny hey Jim thanks for having me all right so Jason this is a huge surprise profit so we just got asked what's the make of it how did it happen well you know I think the business continues to just grow fast and I think the team is executing great the market is growing and really just you know really pleased with the performance we continue to exceed our expectations that's why we're raising our guidance so significantly for the rest of the year and yeah we're really excited about the trajectory of the business I do not blame you I do would like I'd like to know how things have changed since the Supreme Court said the gambling was fine because it seems like initially there was just giant land grab now it does seem to be pretty rational it has that changed I think so I mean I think a lot of it was a combination of you know early in the industry and also we had a pretty rash irrationally exuberant market in 2020 and 2021 and I think that fueled it and now I think everybody's very focused on the path to profitability and also on continuing to grow and I think we've all realized those things do not have to be in conflict you can both as we showed this quarter put up really nice growth numbers and achieve profitability and continue to increase your margins and that's what we've been doing so when you're a customer acquisition for say North Carolina it becomes a pretty good decision based on the lifetime value of a gambler that's right so I mean we are still investing and you know in the quarter as you noted we launched North Carolina we also launched Vermont both of those were negative for us but overall the company's obviously doing really well and I think exactly where you just said in so many other states is happening where the paybacks are there and that's why the company's been able to achieve adjusted even a profitability I want to talk about something that I think a lot of people may not realize that there was a there was a gambler who also played basketball John Tae Porter and I think what he may not have understood and what the players in sports may not understand is that you work with the regulators you actually flag people so perhaps maybe the players should think twice and not be banned for life because you're somewhat like an SEC and a brokerage house you're not just mine you're mindful of the of the bets that are being made what you're talking about is exactly one of the many benefits of the legal market um you know you've seen past scandals where sometimes they can things can go on for years or even longer uh and and and finally maybe that gets caught maybe maybe it never gets caught um and our you know legal regulated market when we see suspicious activity you're absolutely right we report it and you know look how quickly things are and it's unfortunate it's happening but I think you're right I think you know a few of these things happen in the consequence they're severe and more importantly people realize they can't get away with it and then now legal market they're going to get caught I think you'll see a drastic decline I'm not going to say it'll never happen again but um you know really showing that we are catching this and that people are suffering severe consequences for making these bad decisions I think is the answer yeah and I think it's great because I think that in the old days we used to read about people who rigged things and they rigged and rigged and rigged and never got caught because no one ever knew was all done in the dark now uh something is not done in the dark uh Dave Portnoy has been in the show a bunch of times everybody follows him on Twitter uh he's both a colleague now with the team but he also has been bragging that he's been beating the heck out of you how do you rationalize the fact how do you deal with the fact I mean the guy is on a hot street even though he's gone with a lot of the of the favors yeah you know I thought Dave was just gonna cost us a few bucks in marketing but turns out he's uh you know he's winning a lot and on the betting side too um he's been on an unreal hot street I mean you know really good good for him uh I think it's a you know listen obviously we love to see people win some people are going to win sometimes some people aren't and you know it's actually an extra benefit when that person happens to have a big following and is getting a nice uh some nice publicity around it so I'm really happy for Dave and glad to be partnering with barster I don't blame you at all it's still the most fun site but some sites to watch now I want to ask you um we're this weekend we have the Kentucky Derby and I hope one day I can just go into my my draft king site and it's there but you do have a link up with Churchill Downs correct so people want to gamble can place bets on what's basically just a about a coalition you have with them I don't know how it works yeah we have a separate app called Draft Kings Horse um so you know you can go and play with Draft Kings but you're right it's through a partnership with Churchill Downs and we're working actually on integrating that better so it won't have to be you know a separate thing um you can use the same funds in the same account so that's something we're actively working on and hopefully by a next Kentucky Derby we'll we'll have I hope so because we're going to our Derby parties to make it easier now one last thing international I understand you might be interested there's talk about UAE is a place to go uh what's your plan well right now we're really focused on the US obviously we we you know it's our job to make sure we're aware of everything going on around the world and if there is an appropriate international opportunity that we should examine and consider then we will do so but the bar is really high given what we think it's actually a big advantage for us that we have this you know sole focus on the US if you look at most of who we're competing with whether it's a totally separate line of business or a different geography there's something else for us this is it we can tell our whole company it is about winning in US online gaming and I think there's a lot of power to that I think there's a lot of power to that focus um so you know it's not to say we would never do anything and certainly we will continue to look at opportunities they arise but we're also going to have a very high bar and be very selective about any moves make internationally and we'll have to do it at the right time too fair enough I just want to be sure I wanted to get that in there my in there my colleague contestant Brewer covers this industry very well as you know and I certainly want to share anything she's given us but look I want to thank you and I do want to disclose to people I've had a relationship with draft Kings I have a bull market fantasy and a lot of it is because look I just I like fantasy and I know that these guys have a great fantasy site so there we go that's Jason Robbins co-founder chairman CEO if you're having Jason I love when you come on the show thank you so much I love coming on thanks for having me it might be back in the spring when we return master the markets one stock at a time the lightning round is up next it is time it's time for the light months and minutes for everyone to understand this sucks up by myself I've ever been recording I'm gonna close them and then the lightning round is over are you ready skiing day it's time for the light round camera let's start with Jay and Florida Jay big boo yah Jim this is Jay from Amelia Holland Florida absolutely I'm considering buying one main financial okay one main look look that high yield tells me that it's a little bit riskier than people would like but it's a it's a personal owner uh but you know what I think the Fed is going to close lower rates so I think it's going to work for you let's go to Camden in Massachusetts Camden how you doing I'm doing well how are you I'm doing good thank you so I just had a question about what's down on recent partnerships and expansion in the areas like automotive and smart speakers do you think it's both potential is a strong it's got to make money it's losing money it's been around forever just not making money that's no good for me let's go to Kevin and Missouri Kevin hey Jim I love your show thank you um cracker barrel old country stores I watched it dropped steadily from three years ago about 172 the 50s now now it sports a 9% dividend they got good food seem to have good management and they have real estate on their family I know let me do this I myself have been amazed that the stock has dropped like a rock and I've been amazed because I think they can cover that dividend we're going to do some work on that because I used to recommend this talk and it has been horrendous and I haven't looked at it in many years so we'll come back and do that one let's go to Brendan in New Jersey Brendan hello Jim hello I have a question about an Argentinian company which I know nothing about all right fair enough after this guy Javier Malay got elected I mean it's dock it seems like going going up and I'm talking about Burupo in San Diego oh man this is another one that I don't understand all right man look at you two in a row but it's okay I mean it's a the right let you round and say that's the way it is it's easy come easy go for me I don't know I got to look into this company why is that selling where it's selling I have no idea but I will come back with an answer let's go to Fernando in Florida Fernando yeah who are you from Orlando oh how's it going very good mr. Kramer how are you doing I am doing well thank you what's happening oh my question is GM get on motors time to get out I like GM very much it's inexpensive Mary Barr's terrific job I think you're in good shape there let's go to Dan and Illinois Dan hello mr. Kramer this is Dan old from Rockford Illinois and how are you great how are you doing good good from my friend Jim Stewart's Rob let's go to work all right screw capital of the world and home of the Rockford Peaches forgot I went to I went to Laura's College in Dubuque Iowa and there's a regional regional bank there called HTLF and that HTLF is a very good regional bank that has got good good numbers and is very conservative I think you're in good hands with that one let's go to Jim in Florida Jim Jimmy Chill this is Jim from Les Chateau and Pelican Marsh in Naples Florida wow what a mouth okay okay what's up I'm gonna start off by thanking you and your staff for all your help throughout the years oh you're quite welcome I've been watching since cut alone Kramer with my dad got me to watch at a very engaged that's just people that's 24 years ago just people know yeah my question is on a wind and solar company which I started acquiring several years ago I've added to my position that it went down the stock is down forty for six percent over the year paid the good dividend buy seller hold NEP it's losing too much money maybe I'll put them on but I mean the revenue is a little bit losing too much money for me to recommend I'm sorry and that ladies and gentlemen's the conclusion of the lightning round the lightning round is sponsored by Charles Schwab coming up check please Kramer on which stocks are feasting in the battleground restaurant space when we return what's the toughest business I've ever tried my hand at the restaurant business so much has to go right labor check service point of sale price of food hours approach pickup delivery no matter what I did I couldn't get the mix right the price of food versus drink the number of hard drinkers from my beer tequila and mess gallon chips versus families we eat a tumb of barely cut to liquor which would be best where do the money where's the money best made I thought it was liquor it turned out to be families the whole things ridiculous but one thing I did know when I was running a restaurant my year-over-year quarter-over-quarter numbers I knew those cold not to mention my link bump business I drove people hard to meet the numbers and in the end I see the control of my best manager because he was just better at it than I was I bring this up because we're seeing some wildly divergent numbers in the restaurant companies and the difficulty this industry helps explain why the best way to analyze restaurants is to be clinical we look at same-store sales because if we just looked at actual sales and we throw off by any chain that's adding lots of new locations or closing lots of old ones the same-store sales and the other hand just don't lie so who's got the best numbers besides bigger we just mentioned them earlier which by the way is the total winner first by a mile is wing stop yeah this had 21.6% domestic same-store sales which is inconceivable especially because they're also laughing some amazing numbers how to see oh Michael Skipworth do it all right this is interesting I mean wings are hot right at both literally and favorably see the prices are low most important it's almost impossible to get a wing stop franchise without having already put up great numbers at another restaurant chain they're very good at screening the franchise these people put up I admit they have to they just can get anyone they won why because a a way stop makes almost $2 million per store second I should probably a plus 7% by the way they're market caps almost the same as another company I'm gonna mention soon there are more look Chipotle is got the growth came from higher traffic rather higher prices we like that they did raise price in order offset higher costs though but you know what it didn't matter especially in California where restaurants are being hit with the new $20 minimum wage has earned sales that's amazing fresh ingredients terrific limited-time offer all offerings amazing one superior score management who buy people by the way who are in sanded with stock I like that third stopping those pizza it'd been a ride under previous management but two years ago Russell Wiener came in lit a fire to franchise pizza chain and you know what it's working the companies racking up in impressive 5.6% same for sales growth for the quarter I think it's bold decision to link with Uber Eats for delivery was brilliant the prices here are perfect for a cash strapped consumer I like the banana peppers and I like I haven't really liked their their app is amazing next up packed oil engineer to legend or turn around at Domino's 14 years ago he's become exact chair of restaurant brands they're natural I would not be surprised if he's not really running the show over there because the numbers are that good Tim Hortons up 6.9% Burger King up 3.8% he's not happy that 3.9% US Popeyes up 5.7% and 6.2% here in the US Tim Hortons own fire because people love the coffee the pastries the price though I was working hard to expand Popeyes as their chickens been a big hit overseas but it's domestic same source sales growth at 6.2% reminds me of the great numbers Popeyes used to put up when it was still independent those are the winners what about the losers young brands failed to deliver put up minus 3% same source sales globally Taco Bell plus 2% in the US put pizza down 6% domestically KFC down 7% KFC number standing contrast the wing stop don't they making me think that something's going to ride there Taco Bell offers terrific value and a nice modeling effort he said it's been a lager for ages it's time to just spin it off like Red Lobster for DRI for what Jordan did the realest point that was Starbucks with a 3% decline the same source sales which took my breath away frankly the company's shocking fall from grace is stunning a function of high price terrible throughput and way too many way way too many offerings for the staff to know how to make them with any alacrity the real problem at Starbucks is those somehow management police businesses better than ever there are industries where you can get away with being denial about your performance but as I know all too well the restaurant industry it ain't one of them I like to say this always a bull market somewhere I promise right plan it just for you right here a man money I'm Jim Kramer see you tomorrow basketball starts now all opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC NBC Universal or their parent company or affiliates and may have been previously disseminated by Kramer on television radio internet or another medium you should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion Kramer's opinions are based upon information he considers reliable but neither CNBC nor its affiliates and or subsidiaries warrant its 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