We recently published an article titled, Jim Cramer is Talking About These 12 Stocks. In this article, we are going to take a look at where Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) stands against the other stocks that Jim Cramer has talked about.
During September 30’s episode of Mad Money, CNBC’s Jim Cramer delved into the previous three months and the market’s events. He identified some positive developments amidst the turbulence in the market.
Cramer highlighted that Dow inched up 17%, the S&P 500 went up 42% while Nasdaq gained 38% during the months. He remarked, “For once, good news was actually good news and interesting.” He went on to say that miracles still happened in the stock market’s third quarter. He pointed out that July, August, and September yielded remarkable returns, even highlighting the typically troublesome month of September, which saw the broader market rising significantly.
Cramer elaborated on the lead-up to the Federal Reserve’s decision to cut rates by 50 basis points. He characterized the economic landscape as having “no landing at all,” explaining that the economy continued to grow, inflation decreased, and unemployment ticked up. He suggested that the central bank laid the groundwork for a significant rate cut, which was the reason that there was no panic on Wall Street after the cut. The former hedge fund manager also praised Federal Reserve Chair Jerome Powell for achieving the challenging feat of a double rate cut without shocking the markets.
Moving on, Cramer talked about how the market’s breadth expanded as well, with many sectors gaining traction beyond the dominant Magnificent Seven tech stocks. He noted that a variety of industries, including banks, utilities, retail, healthcare, housing, and transportation, enjoyed their moment in the spotlight.
As for the upcoming election, he referenced Michael Cembalest of J.P. Morgan Asset Management, who described it as “the most polarized election in 100 years.” Cramer observed that, despite the political drama surrounding the elections, Wall Street remained largely unfazed, even in response to significant events like Vice President Kamala Harris potentially replacing President Biden on the Democratic ticket and the attempted assassination of former President Donald Trump.
Cramer also highlighted a shift in the housing market, pointing out the first signs of relief from formerly soaring inflation figures. He suggested that an increase in available homes could be the breakthrough needed to address this intractable asset class that has resisted price declines.
In terms of international markets, he noted that the Chinese market staged a rally, even in light of dismal economic news, owing some of this movement to government-ordered buybacks and influxes of capital.
Cramer commented on the ongoing speculation about stagflation, particularly concerning oil prices, reminiscent of the oil crisis in 1973. He addressed the ongoing conflict in the Middle East, mentioning that Saudi Arabia had abandoned its unofficial price target of $100 per barrel in favor of increasing production.
While many believe that oil prices could soar at any moment, Cramer expressed skepticism, suggesting that although a spike could still occur due to geopolitical factors, he thinks those fears may be overstated.
Reflecting on the past nine months, he concluded that despite the potential for stagflation, 2024 has surprisingly turned out to be a great year for the stock market, defying expectations.
Our Methodology
For this article, we compiled a list of 12 stocks that Jim Cramer mentioned during his episode of Mad Money on September 30. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer Said Not To Sell Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Number of Hedge Fund Holders: 17
In his September 30’s Mad Money episode, Cramer said not to sell Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) and highlighted that the stock lifted in the previous week. It went up 13.35% between September 23 and September 27.
Established in 1969, the company runs a distinctive chain of restaurants combined with gift shops across the United States. These establishments serve a variety of meals, including breakfast, lunch, and dinner, while also offering dine-in, pick-up, and delivery options.
The gift shops feature an eclectic range of items, from rocking chairs and seasonal gifts to apparel and specialty foods, which offer a unique shopping experience alongside dining.
Cramer made a specific note of the CEO, Julie Felss Masino, saying that “she’s doing a good job.” Recently, under the leadership of the new CEO, Cracker Barrel (NASDAQ:CBRL) is navigating a period of transformation. In May during a conference call, Masino acknowledged that the company “has lost some of its shine” and requires changes to attract both current and new customers.
During the fiscal Q4 earnings call, Masino articulated five strategic pillars that will guide the company’s future: refining the brand, enhancing the menu, evolving the in-store and guest experience, excelling in digital and off-premise services, and elevating the employee experience. These initiatives show management’s comprehensive approach to revitalizing the brand.
During the call, Masino highlighted the company’s optimized pricing initiative, which has been positively received as it contributed to increased customer traffic and sales, particularly in remodeled pilot stores.
A significant aspect of Cracker Barrel’s (NASDAQ:CBRL) strategy has been the introduction of its loyalty program, Cracker Barrel Rewards, which launched just a year ago. With 6 million members already, the program has exceeded management’s expectations and is a reminder of the brand’s value proposition.
Masino said that members tend to visit the restaurants 50% more frequently and spend 10% more per visit compared to nonmembers. Additionally, these loyal customers show a strong inclination toward retail purchases, with average spending on gift shop items about 40% higher than that of non-members.
Overall, CBRL ranks 10th on our list of stocks Jim Cramer is talking about. While we acknowledge the potential of CBRL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CBRL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.