Commodity costs are coming down, and that means restaurant stocks are back in style, Cramer said Monday.
The sector took a beating when commodity prices were soaring. Higher food prices cut into margins, and high gasoline prices kept people home. But now, Cramer said, “It’s looking more and more like the big restaurant death sentence has been commuted.”
For that reason, Cramer decided to spend the week of May 16 highlighting key groups of restaurant stocks. On Monday, Cramer had a “regional to national restaurant challenge,” focusing on names with the potential to give home gamers the biggest gains.
His “five star winner” is BJ’s Restaurants . This California-based pizza and beer chain has just over 100 locations in 13 states, and management plans to eventually expand to over 300 locations. It plans on opening 15 new units next year, a rapid 14 percent increase.
“The growth here is simply immense,” Cramer said.
But growth alone doesn’t make this company a winner in Cramer’s book. He also believes BJ’s is in terrific shape all around.Page 1 of 3 | Next Page