Microphone and say these the against inflation. Im sorry. What inflation . I see deflation almost everywhere, except in wages. But clearly thatats all that matters to the fed, because by any other calculus, Everything Else is going down, except for make bonein chicken and allnatural beef. Two pretty niche commodities, unless you own a restaurant like i do. If you didnt know any better, you would think these fed policy makers will talk about the need its a recipe for declining stock prices, and thats what youre getting. No matter, like ive told you repeatedly, as soon as the fed got the ammunition to raise rates in the form of last fridays very strong employment number, this market would go from being intermittently bearish, with a somewhat popotive backdrop to oututght beararh. Some some pockets of strength hand some pockets of excessive negativity. Thats exactly where we are right now. Remember, the fed has no mandate to preserve your stock portfolio. I have they critics who sayivity stocks who want higher to to give your portfolio a boost. That is just totally untnte. I absosotely do favor higher stock prpres, because more of you own i like stocks savings vehicles. I dont want you to lose money. Hey, thats my bias. However, i also dont want inflation to come roaring back. Even if stocks go higher, you wont do well in a raging inflation environment, simply because your purchasing power theres a very easy test that i use to assess the stock marketet which is what we care about in cramerica can handle a rate hike. The text, simp. Is the economy so strong that it will slope, but not derail the good things that happened, will it be this this. All aboard or this . [ train whistling ] i think when we have the situation whererprices are coming down for so m my good goods whether its the retail or supermarket, you dont need to be worried about a inflation. Unfortunately im not hearing these concerns from any fed officials that spoke today. The fed feels sanguine Everybody Knows them now. Its facebook, amazon,n,etflix and google now everybody the more Portfolio Managers pile into these names, the less i like them. Now, let me introduce you to into the situation that will work. Its a niche situation. Its stocks that reflect not negative, but too Much Negative d can be bought eithth for trader investment, exhibit a is kohlhl, where i shop for sogs or slacks. But anyway, i got a very nice kohls from my house, nice place. Seven months ago. 25 up in six months. Accelerated with the got clobbered again. The market figured as bad as macys was, it would tore and when kohls delivered, the stock zoomed. Yeah, we got too negative and it took off. Macys does have more hurt by the strong dollar, i have nener en one of those leaders holding up a yellow flag or one of those umbrellas, with going into the kohls. I think that it would shockingly bad i clearly didnt spend enough when the wife took me there two weeks ago. I did damage to myself, but now everybody else is getting damaged. Hey, how aut that popeyes louisiana kitchen. We had the ceo on today. I think the pharmaceutical companies could soon fit the bill. If theres a fedengendered slowdown, theyll be are you ready skeedaddy . Bristolmyers. Its a stock that n be punished by rhetoric and the fact that its a member but bristolmyers is down almost 10 , and i want you to keep a eye on both General Mills and kimberlyclark. They reported terrific quarters, with the recent of the market. In fair theyre in consolidating industries. Plus the raw costs, theyre ought plplmeting. Theyeyave less exposure tohe strong dollar. Finally let me give you another one. They went down today. Oddly i believe as we see more and more challenges, youll begin to be questioned about spending more on defense. In the nest 4,270 debates, im telling you this is what were going to talk about. We dont have enoughghircraft power to project power in southeast asia. We made our army about as lean as it could be going into every president ial trip over each other how they need a stronger army, navy, and air force. Its a fact we must accept that stocks will get punished by all d chatter, all, not,t,o matter what happens with commmmities or even the data. Fed wants rates higher. Were on the lookout for stocks being overly punished by some sort of mistaken group think. Being meteed out, well point them out before they round. Its a harder way to make money, but still a way. Heres the bottom line. Well get through this period like the other 26 times since we bottomed back in 2009. Thats something you can count on. Jay in texas, jay . Caller hey, jim, happy new year, booyah jim bo. Im all over that. Whats going on . Caller my son and myself were longtime followers, first time caller. Im also a and my son goes to with a finance degree. Fantastic. Caller we do some analysis of reading your books, and we have a q qstion on hain celestial. I think the world of simon and hain, but when a company does not deliver the kind of itself wants, and ifsh irwin simon was disappointed. If hes disappointed, im disappointed. You have to wait for the next quarter to see if things get better. Its a great longterm investment because of natural and organic, but i cannot be jumping up and down say buy haha he was disappointed on, except r proteal. Alex in ohio . Caller booyah, jim. Booyah, alex. Caller i appreciate you. Im a big fan. I dont know how you do what you do, man. Sure trying. Its a tough day. Caller the question you have is regard to jetblue. Is it a good pickup for the long term . If it were down a couple bucks. The thing hahabeen a horse, an absolute horse, t it hasnt come down enough for me to say i like it more than delta. I still like southwest more. Jetblue has been a winner, but i need it to come down before i can pound the table. Already the market is getting punished for certain, but some stocks are getting overly punished. Its almost like theyre falsely being condemned. Keep an eye on these. They wililcome back. We always s t through it together. Cmon, whehehave we not . Grubhub is king when it comes to delivers delicious dinners, but the stock seems familiarished to me. Then macys got slammed yet. Im telling you why the bear case extends far beyond the maul. Plus whats next . Can it continue . Eifert the ceo. Sosotick with cramer dont miss a second of mad money. Follow on twitter, have a question . Tweet cramer madtweets. Send jim an email. Or give us a call. Miss something . Head to madmoney. Cnbc. Com. The beast was as long as the boat. For seven hours, we did battle. Until i said. You will not beat. Meeeeee greg. What should i do with your fish . Gary. Just put it in the cooler. If youre a fisherman, you tell tales. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Put the fishshn the cooler wewee got trouble in tumum town. Peptocopter pink relief is the first responder, so you can be a business boy wonder fix stomach trouble fast with pepto. Weve been changing things up with ky love. Oh yeah. Its a pleasure gel that magnifies both our sensations. It gives us chills in places weve never gotten chills before. Yeah, it makes us feel like. Dare to feel more with new ky love. Americans. 83 try. To eat healthy. Yet up to 90 fall short in gettinin. Key nutrients from food alone. Lets do more. Add one a day mens. Complete with key nutrients we may need. Plus it helps support healthy Blood Pressure with vitamin d and magnesium. One a day mens. Jill and kate use the same dishwasher. Same detergent. But only jill ends up with wet, spotty glasses. Kate adds finish jetdry with five power actions that dry dishes and prevent spots and film, so all thats left is the shine. For better results, use finish jetdry. Stroro hair can do anythinin just like you strong. Is bebebeful pantene choose to move freely. Move free ultra has tripleaction support for your joints, cartilage and bones in one tiny pill. Move free ultra. Get your move on. And now try move free night. The first and only 2in1 int and sleep supplement. All l ght. What the heck has happenededo grubhub . Heres a aompany with the numbmb one online food ordering platform, and cant make it through the workweek without yourself lunch. When grub hub became public back in april of last yea the market went gaga for that stuff. Hallelujah the darling of the highgrowth internet space. We were told they said disruptive technology. Thats transforming long stagnant restaurant takeout businesses. And they transformed the way many of us ordrd food. So much easier to do it online than to pick up the phone, except for here, because we dont let our food travel. So fast forward to today. Alternates more that a year and a half after the ipo, its become a total dog, with a stock thats down more than 30 year to date. 30 . In fact its not trading a when, and perilously we need to ask ourselves something has it been punished too much . That its become a relative bargain . Or has the narrative here changed . Making the stock a lot less attractive than people initially thought . Even though its going down, your worst nightmare, youre a value guy . Lets begin at the beginning. All the excite started less than a year before the ipo, when the old d that can let yououse the web or your phone, to get takeout or deliveries in hundreds of cities nationwide. In addition to the grubhub seamless business, they own dining in and restaurants on the run, local companies it acquired earlier this year, and owns all menus. Com, both on online repose torrie of is menus. Plus the company has its order hub business, by improving the online ordering and delivers process. When grub hub finanay became public, this this thing actutuly soared 30 . On its first gale of trading, a redhot internet stock. The bull case was pretty straightforward from the getgo. We heard how grub hub was a disruptor in a fragmented industry. The company talked about how its total Addressable Market could be 61 of all restaurants in the u. S. , and given that when ub hub became public, only 5 actually occurred officer the ternet . Ll, it was pretty nanaral to assume this would be a very good longterm growth story. At the same time grub hub had all the share in the online delivery business, serving over 30,000 restaurants, 4. 3 million users, numbers that havent only so back then, they concluded that they had built a defensive, sustainable and increasingly profitable business propelled by some phenomenal apps, and a big motor around it. Plus like so many other companies, it wasnt hostage to advertising. This wasnt a stock shahhic only judge on page views or eyeballs. The restaurant pays them a commission worst at least 150 . Show higher on the, out of the gate, grub hub average commissions were 14. 2 , the Revenue Growth here looks spectacular, up 85 in the first year it became public. So its no surprise that grub hub worked its way higher, rallying up to 74 when it peakeded. 47, but then we reached late april of 2015, and since then grub hub has plummeted down to where it is now, its almost cut in half. Its been a nightmare to own. So what exactly went wrong . First of all while its expanding rapidly, its slowed pretty dramatically, and you know how these growth guys hate that. For exampl in the last quarter, grub hub 38 Revenue Growth, but still down big from the 47 growth in the previous quarter, not to mention their fabulous 75 growth rate the year before. Thats a major deceleration. Remember, we like accelerating growth, and it makes you thing about most mates or ubereats or even, yes, whoa, amazon might finally be taking a toll on the companys business. Its been trampled by a seemingly endless which came to a real crescendo when the companreported a truly disappointing quarter at the end of october. I mean, the Stock Plunged 23 in a single session. Wall street is now acting like grub hub is road kill. And at thinks levels, the stock still trades at 23 times next years estimates. Its a reasonablblestimate, as long as the estimates dont keep being cut and theres no certainly about that. What was so terrib at the most recent quarter . It missed both the top and bottomline estimates, but also back the company spend these are just 9 headlines. Dig deeper. It starts to look look every aspect of this business is decelerating. Grubhubs take rate, the commission he get from each quarter was supposed to be growing. When grubhub came public, a lot might approach 20 , but its stuck at the level for ages. What else . The active user base is still growing. That growth race hag steadily decelerated. It increaseded by 41 , i know, sounds good year other over, down and 46 the quarter before that that should have given the number the boosts, right . You buy more and more business, in absolute terms, expanding a user base, its impressive. Relative to the whicicis what matters, it is disappointing. Perhaps worst of all, grub hubs daily orders, increased by just 22. 5 , down from 33 . Grubhub can say it was caused by allergy gists, buzz theres a clear trend, showing that grubhubs ground is indeed growing. A nightmare for the owners of the stock, which brings me to the other things that are unnerving investors, grubhub has business, and into the delivery spspe, with actual driveve to take the food themselves rather than leaving everything to the restaurant. Managementndicated theyll be d spending 10 to 20 million to build out the delivery capacity next year. Theyre already delivering in 30 markets. With plans to move into 40 more. Theyve been vocal about the lowest delivery foos out there. The economics might be legislate ace tractive that is the easy to understand onlnle ordering biz. And its the only way to fend off the rising competition from the likes of uber and, yes, post this companys earnings, the competition is too steep. When grubhub went public 1 months ago, lets just say there wasnt a lot of competition, but now theres a lot in this Online Food Delivery space. You can see it in the decelerating growth rate. Maybybgrubhub can turn thihis to see if the growth here can stabilize. Flyer has now entered the danger zone, making it way too risky for this guy. Ahead. Macys just impacted the wrong. Troubles me. When it comes to ordering popeyes i say treat yourself, but it could also be a treat for your portfolio. I have the ceo, and also homework that could help make you money. Y. Two new names. Stick with cramer. I took mucinex dm for my phlegmy cough. Yeah. But what about mike . It works on his cough too. Cough it works on his cough too. Mucinex dm relieves wet and dry coughs for 12 hours. Im lucky to get through a shift without a disaster. My bargain detergent couldnt keep up. So i switched to tide pods. Theyre super concentrated so i get a better clean. 15 cleaning ingredients or 90 . Dont pay for water, pay for clean. Thats my tide. Weve been chahaing things up with ky love. Oh yeah. Its a p pasure gel that mamaifies both our sensasaons. It g ges us chills in places weve never gotten chills before. Yeah, it makes us feel like. Dare to feel more with new ky love. To truly feel healthy on the outside you have to feel healthy. At your core. Trubiotics a probiotic from one a day naturally helps support both your digestive and immune health by combining. Two types of good bacteria. Trubiotics. Be true to your health. Guys listen up jake, put that down point it at the ground til your ready thats not the ground leo put thth down when your day goes on and on, u need 48 hour odor protection that goes on clear for no white marks. Secret outlast clear gel. Jill and kate use the same dishwasher. Same detergent. But only jill ends up with wet, spotty glasses. Kate adds finish jetdry with five power actions that dry dishes and prevent spots and film, so all thats left is the shine. Wills suddenly become again a quandary. Is weighs on this market, and weighihi on it hard. We know for months now, perhaps even this entire year, hedge funds which trade a relationships have sold is the stocks, sold them whenever out has plummeted. If oil is going down, the economy is not stroke enough. Back in the soup. This is oil as barometer of strength oar weakness dicot mick that kicks in every time oil goes below 45. I haha always thought the e esis behind the trade is a tata wrongheheed, because the vast majority, close to 85 are inseriously correlate lated to the price of out. Heres the issue, though, when you see the stock thats about macys or nordstrom get really pummels . Right before your eyes, and thth do benefef, you get thrown off. One of the great undercurrents gasoline prices would translate to higher purchasing pow and for better earnings in a service economy. But the delivered says not so fast. That declining gasoline send adding up. Thats what made these last few days so jarring. We know its bad in the real wowod. Its like attacks. Sure macys and nordstrom got hurt by warm weather, but in the end it doesnt seem toby hilping anybody in reality, even though we know in theory it has to be. I guess you could say that cheaper oil has become a pox on both of stock and real world houses. Worse yesterday, the saves grace of oil has that the winners with good Balance Sheets would start scooping up the loser and takeovers, the deal that was on everyones lips was exxon, the biggest would buy anadarko, apc, now that the gulf claims are at last behind anadarko, the Big Oil Spill had acted like a poison pill for this company. W that it dissolved there re lots of reports that exxon would strike. Instead we learned one 36hour very strange news cycle that anadarko, again a good company, can approached a rival, apache, with an allstock bid. Felt compelled to issue a release. The result, apaches stock which had spsped on the rumor god d crushed on the negative ananthat anadadko had walked away. Didnt matter. The selling continued. A tough group. Nonjed did we lease the commodity bid, we lost the takeover story. We were in a different posture. Retail clearly not coming believe me lower oil is causing a lot of t t lower prices you are seeing, sosohat happens now . What do we want in especialtily if it doesnt seem to be helping anyone, and definitely hinders all the companies that have become public, especially the Master Limited partnerships. Unfortunately the economy doesnt seem Strong Enough to take the oil higher, plus it looks lie isis, which would always bess a geopolitical disruptor could be on the run because of the russian and kurdish fighters. Lower oil l r docksically becomes partrtf the bear case, not the bull case, and only exacerbating the fears that are out there less the fed sends us back into the abyss of no growth. Can oil hold 40 . Bucs, but while it goes there expect more pain. Thats the nature of the oil patch, and today was one of the nastiest sessions of 2015, and im putting it at the feet of the cocoapse of oil. Ken in arizona, ken . Caller hey, jim, how are you . Aisle real good. Caller kendall morgan, wondering if there is any correlation pricewise to the decline in the price of oil. I dont think there should be. Secondly if these statements by bullard, dudley, lacquer and those at the fed talking about projected increases are playing into this thing . They sure are. I know rich kinder is the chairman, hes been buys stock, but the last quarter was not that good. And theyre all part of etfs and theyre e l going down. Onil reason why you own the stocks typically are for the distributions. Kinder morgan, its wait and see. Luis in North Carolina . Caller yes. Thanks for taking the call. How are you . Caller good. People remodel and buying their homes need to put furniture in it. Im looking it the a little worrisome, but Interest Rates are probably going up. I know you like this company, were your favorites, the ceo has been on the show. The chart is showing. The Conference Call right in the middle othe holiday season. Tell us what we need to see going into it. Youre not going to like what im about to say, but im a devotee, and hes urged people that think short term, they should go. Multiple years. Those who are along for the ride i think will win, but those who are buying it for a quarter, worried right now, they shouldnt be in. Hes telling y y, unless youre willing to think long termrm dont over restoration hardware. I like his thinking. Oil is weighing on this market in a weird and bizarre way, but i think we can still expect more pain from declining oil. Much more mad money healed. Could the latest quarter from popeyes louisiana kitchen be just what your portfolio is craving . Them im celebrating Throwback Thursday by revisiting some of the questions, and your calls. Rapid fire in tonights edition stick with cramer. We know that this has been a difficult time for most restaurant stocks, but at least one of the laggards seems to have gotten its groove back. Im talking about plki, the very wellrun Fried Chicken chain with 2,475 locations, most which are in this country, but a growing number overseas. Popeyes has had a tough year, the stock, not the company. Its down 9 , then the Company Reported some tremendous beat off the 47 basis, strong global samestore sales growth, up 6 . Management also raised the early hence why the stock vaulted 39 about the 41. Even after todays run, popeyes is only about four bucks above its lows. We have to wonder other not if it can clear climbing. I wouldnt by surprised if it continues to rally. So lets check in with the ceo of popeyes to learn about the quarter, welcome back to mad money. Thank you, jim. Good to see you. Everyone was saying every chain is versus trouble. You do four times that. What did popeyes do differently . We covered the country with exciting reasons to come in. We had a report market share of restaurants. That was up two points versus a year ago. Its a competitive category. This was a winning quarter. You talked about chile and peru, and can you put mohr restaurants there . Absolutely, jim. There is more around the world. Were in about 28 countries, and some are in 60. Some of some exileding stories where the brand has proved to be successful, and were excited to open those markets . One of the pillars is to accelerate risks, yet at the need superioioreal estate. A bunch of the restaurants have told me were beginning to run out of interesting Good Real Estate spots. Are you able to find the good real stade . Yes, youre right, but its a competitive world. Theres more competition. You have to have the sales there our units are opening up noror of a million six. The under economics are excellent. That allows them to pay more for real estate. Were in a moment where a lot of people are worried about labor costs. Labor costs for your franchisees are are they starting to feel a pinch . From that appointed forwarar the net effect has been about one . Weve been able to take careful and collective pries to offset that. Look, everyone likes organic, natural, healthy. Great buzz words, but weve been seeing some of the healthier guys not put up big numbers, and guides who are good treats going a bit better. Is there a shift back where if im going out, im going to have something i i ally like, even if its not nececsarily something the best word for me. What we see is people enjoying flavorful food, so our new products, like its spicy youre not eating that at night. So i think youve got to keep the excitement high for people so they can make a choice of something really flavorful and good to eat. Last question, you have a buyback. Stocks in the groups obviously youre doing better, just keep buying back stock and take advantage of it . Well, absolutely. We were excited to report that our board approve that 200 million authorization. We think that tells yoyohow confident we are in our future, jim. It sure does. It was great to see some companys stock pop on good news. Cheryl bachelder, congratulations on a good quarter. Great to see you. Not everybody is struggling. Mad money is back after the break. Same detergent. But only jill ends up with wet, spotty glasses. Kate adds finish jetdry with five power actions that dry dishes and prevent spots and film, so all thats left is the shine. Ive got two reasons to take care of my heart. Thats why i take meta. Meta is clinically proven to help lower r olesterol. Try meta today. And for a tasty heart healthy snack, try a meta health bar. Bring us your aching and sleep deprived. Bring us those who want to feel well rested. Aleve pm. The only one to combine a sleep aid. Plus the 12 hour pain relieving strength of aleve. Be a morning person again with aleve pm. Weve been changing things up with ky love. Oh yeah. Its a pleasure gel that magnifies both our sensations. It gives us chills in places weve never gotten chills before. Yeah, it makes us feel like. It is time. Itis time for the lightning round. Buy buy buy or sell sell sell. Before this sound and then the round is over. Are you ready, skeedaddy
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