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always a homework in summer, and I promise

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to help you find it. Mad Money starts

1:32

now. Hey,

1:39

I'm Kramer. Welcome to Mad Money. Welcome to

1:41

Cray-America. I'm with my friends. I'm just trying

1:43

to help you make real money. My

1:46

job is not to just entertain you, but to educate and teach you. So

1:48

call me, 1-800-743-CMBC. Tweet me at Jim Cramer. I

1:52

hate rooting against the U.S.

1:54

economy, but That's what the bulls

1:56

have to do. Going

2:02

into Smiles non farm labor reports.

2:04

Were. So obsessed with the big picture data my

2:06

means is a said that even controls the action

2:08

during the single most important with of the earnest

2:11

counter forcing say went away with down games and

2:13

twenty two points as big one point now opposite

2:15

Nasa to be one point by one person but

2:17

I think that's because we can breathe a sigh

2:19

of relief that the fed me was now behind

2:21

us. Also when ago. Was.

2:24

That we have to hope. That's why will bring

2:26

a week employment numbers with fewer jobs

2:28

added more modest wage growth because it

2:30

is beautiful absence of them. Wouldn't call

2:32

mapping members that that of civil ceremony

2:35

to say that the door of these

2:37

surveys of we have a single cause

2:39

it's all we talk about. Thing.

2:41

About what happened yesterday. So let's start with

2:43

the A and before the Fed being broke

2:45

got we had a not so lot more.

2:47

If it was pretty obvious why not a

2:49

result we were down. But as people worries

2:51

offensive cheap health much lower the boom on

2:53

the stock market by saying something. Guess. My

2:58

city favors raising rates, not cutting

3:00

them. This

3:03

new narrative alone is an incredible thing. Once

3:05

again hostage and was worse. But the purpose

3:07

is no way of saying everyone's words by

3:09

the place. Surface moments where we see a

3:11

consumer price index numbers it's boosted by one

3:13

or two items and it makes for a

3:16

whole overpowering web of pessimism. Thinks that every

3:18

that does it matter that sees this insurgents

3:20

who is a rent food whatever line item

3:22

impacts the zebra it's gonna drive down a

3:24

stop like Microsoft or Just Country on Earth

3:27

towards it causes low levels wife of what

3:29

reported one of the best quarters of ever

3:31

sees is actually as reverse all. That day

3:33

every day Bradley every start is caught up

3:35

in is weird know since where we hang

3:37

on every piece of Macworld zero every public

3:40

same by major pet official require this was

3:42

the complete self underneath the stock as impact

3:44

even when Apple was a bad inspect the

3:46

set of numbers if the post. Said

3:49

the South hired after hours trading. I have

3:51

no idea how Lomax Him lasts if we

3:53

get an overheated employment. Readings Vardy thirty was.

3:55

it. Was terrified that Apple I phone sales

3:57

with Gladys procedure and they were great. Out

3:59

zipper said it could have been a lot

4:01

worse. Hate desert. The Ceo Tim Cook predicted

4:03

a return to revenue growth in the current

4:05

quarter along with additional one hundred and ten

4:07

billion are by Bakalar Surgeons. I think there's

4:09

a lot to like here. You know I

4:11

say own don't traded. With that only matters

4:13

on. Days with a big picture data let

4:16

it matter. If. It is up as

4:18

big tomorrow as is is in the

4:20

after hours now, if only because the

4:22

nonfarm payroll number was a cool one.

4:25

Oh I hate to sign him because it

4:27

makes us feel like companies have no control

4:29

their own destiny or and we're having control

4:31

of our own for foil every everything seems

4:33

houses which mack were numbers of said really

4:35

cares about and we keep hearing that they

4:37

care about this one this one this one

4:39

that wants to more we as the all

4:41

important way reports of your boss on stocks.

4:43

you actually need to show that was a

4:45

lower wage inflation and less sub fisher here

4:47

because that's what more me love affair to

4:50

cut rates and that is this market is

4:52

about nobody like this kind of nor had

4:54

no nods ever season. Like this. And.

4:56

Give a real was sincere what I'm talking about.

4:58

Our as a while I'll be reporting the money

5:00

and into your treasuries with your almost five percent

5:02

because it makes sense. I want system. Fear that

5:04

the Amazon I follow Amazon like a hawks. I

5:07

like to say that I that I know Amazon

5:09

better than most people on Wall Street possibly including

5:11

the else is. So we focus on this one

5:13

company. Amazon. As dozens of data

5:15

points to go into quarter report but there

5:17

are a couple that really matters. One is

5:19

the growth rate of Amazon Web services it

5:21

up and decelerating for some time and that

5:24

was beginning to impact the earnings they told

5:26

us. things get better. I know I fought

5:28

them on this because I was really worried

5:30

with mans represented evidence that my view was

5:32

wrong. Spencer's as the Be Right Amazon Web

5:34

Services What's going on Cruises? It's so important,

5:36

Lucrative. Very moving. The second issue is the

5:38

seemingly endless losses in Amazon's international Ms. Let's

5:40

see you know it's actually probably thoroughly to

5:43

see the price of access. To some damn, albeit

5:45

a preponderance of seemed even so much. Don't.

5:47

We got we weren't Three key metrics: three home

5:49

runs, And

5:52

Amazon. Has been resources it has said

5:54

press conference so this fall out number

5:56

since I mean very little The Surprise

5:59

yesterday m. Stop Reforms was nothing

6:01

burger until was three. Got over his

6:03

worries about eight thousand. Next move. Day

6:08

was were passed the Big Bad a van

6:10

of the said so Amazon could rally more

6:12

than three presents and yet what how long

6:14

that's going to last until the employment of

6:16

her mom. Now the said meetings always been

6:18

important to them with the positive session about

6:20

his interesting. Sermons and for the says.

6:23

It. Is misguided bid for transparency

6:25

different? A monster. Safe as doesn't need

6:27

the whole two and a system for every me. He's

6:29

chosen doing supply will when just how far

6:31

as well. As extremely risky

6:33

move the he has. Need.

6:36

To say they are done raising interest rates

6:38

less your think of employment incredibly strong as

6:40

those is throwing punches. The vetted no business

6:43

taking where I saw the day will power

6:45

so fixated all sorts of data points the

6:47

always had I'm thinking about was employment is

6:49

incredibly robust. Job markers The whole reason why

6:51

we haven't place in the first place. People

6:53

without jobs are a lot less. has his

6:55

bedroom or buy cars or homes less pennies

6:57

what allows places the com doubts I wish

7:00

there were better way to do with the

7:02

only way to said beats and places by

7:04

causing harm Point in our best inflation fighters

7:06

Now. Does he do with the government's

7:08

there's a big providers of goods Walmart,

7:10

Cosco, Amazon. with the ladder actually being

7:12

sung by federal regulators because the by

7:15

the ministrations is especially skeptical of any

7:17

business. The bases been to be. Amazing.

7:21

Without. Any help from are like two years

7:23

or we can do is accept our feet from

7:25

one school said funds rate to control inflation was

7:27

Razorbacks rooting against the market economies of are so

7:29

told us about inflation is a federal funds rate

7:32

which is set by the media people wasn't as

7:34

good zone and public school system to keep their

7:36

mouth shut and all stock market and something of

7:38

placing for people want to make bets on the

7:40

said next move. Or. Put another way,

7:43

we all know that every single point games has

7:45

a can we wiped out by the morning for

7:47

the number tomorrow and right now role mean stronger

7:49

than expected. It's absurd as the opposite of a

7:51

stock for years market. I. Remember one

7:53

time and Sox traded on the basis of

7:56

how the underlying copies axes it? Then we

7:58

started considering their Sector Me. War in

8:00

the old a sector only control fifty

8:02

percent of the actually given sought spend

8:04

So much investment became passive investment, some

8:07

in the market spirit. Index funds that

8:09

the Sp five hundred became. The most important

8:11

force of the value of a starts with. Sexes sexes

8:13

as the something thirds now was as

8:15

he has to be priced. Directions determined

8:17

by the said that an individual stock

8:19

prices rogers from by the Fed to

8:22

us as everything else is subservient to.

8:24

It was recently Cari Week is your

8:26

stop regardless of a sensitivity economy. Goes.

8:28

Higher. I'm sorry. Bottom

8:31

line wasn't bad news is good news more

8:33

mrs of put as many as in a

8:35

business cycle but as well as obsessive as

8:37

been lately I wish the market is worth

8:40

this way but that's the reality and is

8:42

why you need to bet against he was

8:44

com your moral. If you're hoping

8:46

for higher stock prices, let's go to

8:48

Mass in Missouri. Max. Or

8:51

germs mass were some. We

8:54

all appreciate every the you do for

8:56

us. Thank. You. I'm.

8:59

In a major house of

9:01

pain on accompanies you basically

9:04

been. In. The whole

9:06

camp on. Even

9:08

suggesting at one point they

9:10

were a potential take over

9:12

candidate. For. The

9:14

mid to long term. What?

9:17

Is your outlook for at see

9:19

Okay that's is executing not well.

9:22

I. Say that because when you read the

9:24

com score retired and I executing well. As

9:26

it is difficult for me to figure out

9:29

what they can do. I. Have been

9:31

a backer Betsy I think it is a

9:33

good com the but I just don't know

9:35

how they can fix the darn thing on

9:37

it's got great customer says that. Great movie

9:39

but it's just not working and I don't

9:42

know what to do was to say that

9:44

I still like it but I have been

9:46

wrong and like you. I believe it's a

9:48

good company and I don't know how to

9:50

fix it as heard A D J in

9:52

Colorado Dj a gym. I'd like to send

9:54

out a huge. See

9:59

what? Oh, all right,

10:01

let's not. Hm. I've always

10:03

loved your wit and your spontaneity,

10:06

as well as your obscure literary

10:08

and cultural references through. And

10:10

the way to stop the guys in the

10:12

morning show which is why I want to

10:14

ask about Sg soil. Agreed So just shooting

10:17

on a since the start going to ask

10:19

you about has. One. Of the lowest

10:21

p ratios. Of all the energy

10:23

stocks said just below eight with

10:25

afford p of just above nine

10:27

which also makes it much lower

10:29

than some any research tech stocks

10:32

of crazy valuations of stocks. A

10:34

little bit of a pullback Li

10:36

Li. And to be a

10:38

good reentry Points. The

10:41

stock is Philo Valero. yeah have been

10:43

using Marathon p had one to us.

10:45

I think you're right. I think using

10:47

mobile to make a ton of money

10:49

are people feel it's you say as

10:51

August and just a commodity. I understand

10:53

that, but I do see you have

10:55

a winner there and I would buy

10:57

less than a Robert Mueller robber. Zoom.

11:00

Zoom! Zoom! What can I say? I

11:02

haven't spoken to in a while because

11:04

you've made me so much money said.

11:06

I mean relax a little bit here

11:08

and there but I'm ready and and

11:11

I are you have would you have

11:13

done. Some people is incredible and you

11:15

and thank you thank mean I want

11:17

everybody out there and com era come

11:19

to realize that when you said poof

11:21

I remember exactly what you said about

11:23

the i used to walk and you

11:25

have to sit on you're not wrong,

11:27

you are a hundred percent on. The

11:29

bank you buy say thank you. I really appreciate that.

11:32

Thank you. Thank. You Anyway, last

11:34

quarter this company reported six hundred

11:36

and forty billion in revenues. The

11:38

line with analyst estimates are those

11:40

statutory eating just have a dollar.

11:42

Ninety one beat estimates been five

11:44

point six higher than that. The

11:47

analysts expected their clothes and a

11:49

hundred and sixty of their village

11:51

and V clinics which they invested

11:53

over five point two billion dollars.

11:55

This company is were marked. On.

11:58

Will see me. The top decision it

12:01

was the right decision on my so many

12:03

other companies are they are not afraid they'd

12:05

made a mistake I really value That is

12:07

one of the reasons why I think Walmart

12:09

is a very strong and sour. Know

12:12

Costco for my tablet Frost people

12:14

now that I would own War

12:17

Objects is a bad News is

12:19

good. His moments why hit movies

12:21

infused with opposed to going into

12:23

our shop or memory for the

12:25

company behind series him as ya

12:27

does it have to be I.

12:30

Urge Today Good point is is a

12:32

close with visit the puppies and. Kittens

12:35

V The Sauces, Ill objectivity

12:38

and of the history And

12:40

yeah, he says. Was is

12:42

a sassy see the sale are

12:44

making and dressings. Opponents is Elena.

12:46

As opposed to resist as. Long

13:00

as you prefer on acts

13:02

have a question. We Kramer

13:04

hashtag mad Mentions sends him

13:06

and emailed her Mad Money

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15:45

nearly eight percent on to this is

15:47

of them. Twenty five percent for the

15:49

years that is spent. As much as

15:51

any. Keep it up. And. That's

15:53

why we're chatting with Seven Office

15:55

presence of Brinker National Center says

15:57

I am so sad that this.

16:00

It is not new back to my body. Fairbairn.

16:03

Pay for me on the show. Our super excited

16:05

about the future on the France well. Right

16:08

now Kevin few gotten his big Smash

16:11

Your burger. You got an incredible deals

16:13

and I see on my foot people

16:15

may understand an analyst world that you

16:17

are number one. Friend me on Twitter

16:20

when you are now says that's a

16:22

that's a freezer of old. Written

16:26

though, it's exciting. so know that civil dialogue

16:28

going on right now about that food prices.

16:30

And so we decided to jump in. The

16:32

price of this of the actual big matter

16:34

of you can see that. Is it

16:36

all of the half pound burger? It's

16:38

got thousand island dressing. Or let

16:40

us say, a couple of London's got a

16:42

brioche bun cause of Friday. Wait,

16:45

There's more. It also comes with

16:47

chips and salsa. And to get a

16:49

bottomless greater it's just and Ninety Nine. You

16:51

don't be sad, know we thought about is

16:53

unbeatable in the industry for now. Bring a

16:55

new news as to that Line up for

16:57

free for me. Laugh at Seventy Nine and

16:59

we think that we're going to have a

17:01

big winner on our hands were you know

17:03

it's interesting. I'm listening to him thinking why

17:05

is Thursday's since reader has to be for

17:07

the rich or for the not rich Have

17:09

a for that everybody and I know it's

17:11

probably feels that way and obvious you feel

17:14

that way. The price point is you're talking

17:16

says to me, rich, poor, middle class, whatever.

17:18

I like the bars I like to say so

17:20

want to go to chills. One

17:23

is simply that: are you that on jan scrubs

17:25

or what? His arms. You're absolutely right.

17:27

I think that the folks that are going to

17:29

win in this economy are the ones that me

17:32

all the customer needs not just one and or

17:34

the other end and so know. For example we

17:36

called the Barbell strategy and Margaret as right now

17:38

so we've got a six dollar. A

17:40

watermelon pseudo sports margarita and this

17:43

comes with sinners Locker room his

17:45

office new or triple sec. Or

17:47

for us our makes them and obviously watermelon and

17:50

instead it's a humongous drink on a we look

17:52

at that thing. it's just six dollars. And.

17:54

Then if you want something a little smoother,

17:56

yeah, we got the hottest group of America right

17:58

now because the Needles Marguerite. or I'm sorry,

18:00

Martini, and this retails for probably around

18:02

$12. So that's where I

18:05

guess that wants something a little smoother,

18:07

cost amigos, a little more expensive. But

18:09

that's the point. We're winning with all

18:11

demographics right now and all income segments.

18:14

We think that we can continue to deliver for everybody. Everybody

18:16

wants great food. Everyone wants great service. Everyone wants

18:18

great value. We're going to continue to win market

18:21

share. Are you ready for Senko to mile on

18:23

Sunday? Will you be able to handle the crowds?

18:27

Well, absolutely. You know, it's been

18:29

interesting as we've kind of really

18:31

gotten a lot stronger from

18:33

a customer experience standpoint and winning with

18:36

our customers. We're seeing on those holidays, they're

18:38

getting busier and busier. So we think

18:40

that Senko to mile could be a huge, huge

18:42

day for us. And we're going to be ready

18:44

for it, you know, whether it's with our chips

18:46

and salt or our cold beer or obviously our

18:49

delicious margaritas. Now I am kind of

18:51

in awe of something that you're doing. You're

18:53

still TV for ads, but

18:56

at the same time, for instance,

18:58

we posted something when you were

19:00

on and you were our biggest

19:02

Instagram hit that we've had. There

19:04

is something going on. You mentioned

19:06

that you referenced it in your

19:08

conference call. It seemed like people

19:10

lost over. They shouldn't. It's

19:12

your buzz factor. Tell

19:14

us about having a buzz factor

19:16

for Chili's. Yeah. Yeah,

19:19

you know, obviously TV is still going to be

19:22

the number one way you drive awareness really quickly.

19:24

And we've certainly gotten back into that in a

19:26

big way. We've got some amazing ads going on

19:28

for the big smashing right now, which really shows that

19:30

incredible value versus what you can get in fast food.

19:33

But you're also going to also have

19:35

to have a big presence in digital.

19:37

And so, you know, our social media

19:40

marketers led by George Felix and his

19:42

team, they're doing an incredible job. We're

19:44

getting into that surf media discussion, that

19:46

conversation. And that's why we saw

19:48

that number one trending thing on Twitter, our new

19:50

three for me, offer with the big spasher. We're

19:54

certainly seeing more and more engagement with our

19:56

fan base. And I think you've got to

19:58

do both. Right. top-of-line

20:00

awareness on TV with the kind of bigger dollars,

20:02

and then you've got to make sure that you're

20:04

connecting with your guests on social media. And when

20:06

you have deals like the

20:09

1099.3 for me, it's going

20:11

to be pretty easy to get chatter. Now,

20:13

I want to talk about, I hear what

20:15

you're saying, and I like the simple nature

20:18

of it. And I know when you came

20:20

in, you made a point of making sure

20:22

that there was simplification. I was dealing earlier

20:24

in the week, no need to mention the

20:27

name, but with a large coffee company that

20:29

is making more and more and more different

20:31

kinds of items. And I'm

20:33

beginning to think that you have to

20:35

be from a computer scientist from Stanford

20:37

to be a barista. That

20:40

is not the way it works at Breaker, does it?

20:44

That's exactly right, Jim. You know, since I started two years

20:46

ago, we've limited over 20% of our menu. Why

20:49

do our restaurants don't do that? It's because you're afraid

20:51

of losing sales. We've grown our sales quite a bit.

20:53

You know, I was just talking with our VPOs. Here

20:55

in Lexington, Kentucky, we're having a joint business meeting.

20:58

And we've grown over a half a billion dollars

21:00

of sales in the last two years. I mean,

21:02

that's a pretty impressive number for a company our

21:04

size. And we've been able to do that while

21:06

cutting the menu. And what's happening right now is

21:08

our guest experience metrics have been growing up. And

21:11

because of that, we've got more repeat customers. And then

21:13

we're going to continue to simplify. We probably don't have

21:15

to trim the menu as much. But even

21:17

prep steps can be simplified. So we have a new chicken

21:19

sandwich that actually just came out with a menu dropped two

21:21

days ago. We've limited the pounding

21:23

of the sandwich. That pounding is like the worst job

21:26

for a team member in the heart of house to do. And

21:29

that chicken sandwich is juicier, it's clumper, and

21:31

it's more delicious. And that's also our 1099

21:33

meal. And then another one

21:35

is we got rid of our thin lunch

21:37

patty hamburger, which was a

21:39

double burger. It was only 7.2

21:42

ounces. We now have 7.5 ounces going to the

21:44

normal patty. One less thing to cook, one

21:46

less thing to manage, one less thing to order. And you

21:48

know what? If you're thinking

21:50

simpler, you get a whole much better

21:52

consistency. But the most important thing is

21:54

you have team members that are happier, and you've got guests

21:56

that are happier. And that's what's happening here at

21:59

Brantford. It is not. Hard to understand.

22:01

Complexity is the enemies. Simplicity is

22:03

a friend I want to thank

22:05

Heaven Hobbled presence your breaker as

22:07

the best performer in this world.

22:09

For comment on, I hope you

22:11

have a basic got a mile.

22:14

From the river refer a lot for will

22:16

be great because he had met my second

22:19

rebirth. Of

22:22

fighting never sailed with this

22:24

much style. Sanders away on

22:26

this week's big idea of.

22:32

A Big Ideas. From

22:35

powering the like somerton. Is our

22:37

in our thirties? the dead Sea

22:40

monster? Spider? Snp? five hundred Pts

22:42

I think. Idea that in the

22:44

world to. Invest and so

22:46

much anything before. The differences

22:49

as music is. Necessary

22:52

for purpose computing the senator from a.

22:55

Nice have some risks in my. Parents'

23:16

Place increase in public I think this was

23:18

intriguing is a good option. Strong is it

23:20

doesn't have a lot of me to plaintiffs

23:23

never. I like the cruise lines Buddhism post

23:25

could be traveling was proven be remarkably to

23:27

are resilient. The facts crucible his foot in

23:29

blood diseases are you conscious when when the

23:32

case may be earliest isn't new scouting you're

23:34

the want Problem is that broke been Quargel

23:36

Norwegian Cruise line all these new republic was

23:38

as pure place was I feel it's a

23:41

huge ones less you the bars already said

23:43

hi How heights of moving region cruising for

23:45

a mostly. Storm Quarter with Marcy with especially

23:47

revenue. I was shocked see the stock the

23:49

and sixteen percent extradite at this point we

23:51

will prove his love for the are so

23:54

maybe might be worth swapping into biking. As.

23:56

it's stocked is not as a chance to

23:58

get overheated but once it listen to it

24:00

make a decision if you're in the Royal.

24:02

That's a pretty popular brand, Viking. But if

24:05

you don't know Viking, they're all about small

24:07

ships, luxurious accommodations, destination-focused routes, lots of river

24:09

cruisers in Europe, although they started expanding into

24:11

ocean routes about nine years ago. Then

24:14

in 2022, Viking started offering expedition experiences,

24:16

so smart, like taking people to Antarctica,

24:18

different kind of vacation. Today the company

24:20

has a fleet of 92 vessels, 24

24:23

new ships on order, options for 12 more, not

24:25

to mention routes that span all seven continents and

24:28

all five oceans. I bet you didn't know there

24:30

were five oceans. What

24:33

sets this one apart from the other cruise

24:35

lines? In its IPO perspective, as Viking says,

24:37

pointedly, Emily, quote, we do not try to

24:39

be all things to all people, end quote.

24:41

There are no casinos on Viking boats, no

24:43

children either, and all

24:45

cruisers offer single language experience by avoiding, quote,

24:48

features that are unnecessary for target customers, end

24:50

quote. The company says it can offer, quote,

24:52

a superior product at competitive prices, end quote.

24:55

It's now the only pure play luxury cruise

24:57

line that's publicly traded, I like that. Now

25:00

Viking points to the Conde Nast Traveler Reader's

25:02

Choice Awards from last October, where it was

25:04

the top rated cruise line in the river

25:06

ocean and its expedition to categories, which is

25:09

the first time anyone ranked at

25:11

the top of all three categories. I gotta tell you,

25:13

I follow those rankings really closely. I've

25:16

actually made decisions based on that magazine, so

25:18

this is not idle, others have clearly done

25:20

the same. While Vikings is full of operators,

25:22

very good at finding a specific niche and

25:24

then dominating it. For example, there's another one

25:27

player by far in the North American outbound

25:29

river market, 51% share, nobody

25:31

else comes close. So what's kind of good story,

25:33

but what about the numbers? Last year, Viking put

25:35

a 48% revenue growth of earnings before interest taxes,

25:38

appreciation, and compensation, up a stunning 197% year over

25:40

year, and

25:42

their margins are expanding like crazy. Imagine also gave

25:44

some limited preliminary results for the first quarter of

25:47

2024. As a matter of

25:49

fact, Vikings growth is decelerating as we move

25:51

further away from the pandemic, okay? But it's

25:53

still growing nicely, Vikings occupancy rate from 92.8%

25:56

in the first quarter of last year to 94% in the

25:58

first quarter of this year pretty darn. Good. Past

26:00

year sales increased by 13.6%. And since

26:03

then, they're talking about 13 to 14.5% revenue growth

26:05

in the first quarter. While

26:08

the company normally loses money in the first quarter,

26:10

they're operating the westerns restraint to substantially year over

26:13

year. And make no mistake, Viking had a nice

26:15

$818 million operating population. We're not

26:17

talking about some fly-by-night spack here. Of course,

26:19

nothing's perfect. Viking doesn't have the best balance

26:21

sheet. But you know what? None of the

26:23

publicly traded cruise lines have great balance sheets

26:25

because it's a capital intensive industry. Plus, Viking

26:27

had to issue tons of debt in order

26:29

to stay alive during the pandemic like the

26:31

rest of them. But when you compare their

26:34

credit metrics to the rest of the industry,

26:36

Viking's balance sheet doesn't look particularly worrisome at

26:38

all. In fact, compared to Carnival World Caribbean

26:40

in Norwegian, I'd argue it's got the healthiest balance sheet

26:42

in the industry. Certainly, it's got the lowest debt to

26:44

equity ratio by far. So I like the story.

26:46

I like the numbers. What about the stock? Is it worth buying

26:48

here? And it's not here. Where? What's

26:51

the thing actually worth? Okay, Viking's IPO

26:53

is upsized from the original 53 million

26:56

shares to 64 million shares. Instead,

26:58

high demand. It priced at

27:00

24 towards the high end of the proposed price range.

27:02

Yeah, certainly stock's open for trading at $26.15, close just

27:05

below that level of $26.10. I like that. See,

27:10

add another 3.4% today, 27 and 27. I don't like them too high.

27:14

At these levels, Viking has a market capization of close

27:16

to $12 billion. Enterprise value of more than $15 billion when

27:18

you include the net debt on the balance sheet. Now,

27:20

to come up with an evaluation here, we need to

27:22

make some assumptions into a little pocket in the envelope

27:25

math, figure out how much money these guys commit. Let's

27:27

start with the assumptions first. Viking says they're likely to

27:29

put up 13% to 14% revenue growth the first quarter,

27:31

as I told you. We'll use

27:33

the low end of that range to be conservative. Okay, we'll go with

27:35

the 13. Then we'll check that out for the full year. On

27:38

top of that, let's assume that flat

27:40

EBITDA margins, as I mentioned the EBITDA

27:42

before, which translates to $1.23 billion in

27:44

earnings for interest, taxes, appreciation, and modernization.

27:48

Using that sketchy estimate, Viking has an enterprise

27:50

multiple of $12.4 billion. Isn't it egregious? Does

27:53

represent a clear premium to the other cruise

27:56

lines, which all have high single digit enterprise

27:58

multiples. By the

28:00

way, the enterprise multiple, which is an enterprise

28:02

value divided by EBITDA, it's often the best

28:05

way to value companies in capital intensive industries

28:07

like cruise lines that don't lend themselves to

28:09

pure EPS kind of thinking. So

28:11

does Viking deserve that premium multiple over its

28:14

friends in the industry? You know

28:16

what I don't know what it does. Viking's got

28:18

a cleaner balance sheet than its peers, differentiator brand,

28:20

caters exclusively to high end customers, which I absolutely

28:22

love. Premium is such a great place to be.

28:24

Part of the business I expect to hold up

28:26

better than the mass market set of things. Now,

28:29

I'm going to do something that I usually don't do. I'm giving you

28:32

my blessing to buy Vikings right here. That's

28:34

right here. And that's even if it's

28:36

been up for a couple of days. It's

28:38

not wild up. I like an IPO that

28:40

comes here and opens here and then just

28:42

does this. That's kind of my textbook Kramer

28:45

IPO that works. Of course, small position here,

28:47

maybe a pullback get bigger, but I very

28:49

again, very rarely do this. I

28:51

am saying Viking is a buy right now. I

28:53

want it to pull back until the valuation is

28:55

more in line with the rest of the industry,

28:57

which would be about 20. But after what happened

28:59

with arm holdings where we only got in spool,

29:01

I'm not going to make that mistake again. Six

29:04

months later, from now, the lock up

29:06

as insider will expire. You get a chance to buy

29:08

even more. Here's the bottom line. Even

29:10

though Viking somewhat hot starters made its stock more expensive

29:12

than its cruise line peers, I am willing to pay

29:14

up for this one because I think it's going to

29:16

be a winner. It's my new favorite

29:18

in a group that I have liked for ages and

29:20

ages. Let's take calls. Let's go to Sam in New

29:23

York. Sam. Hey,

29:25

Jim Kramer, how are you? I am doing well,

29:27

Sam. How about you? Good.

29:30

Hey, Boeing, buy or sell or hold.

29:32

I'll tell you the good news about

29:34

Boeing is that they've got this guy,

29:36

Malenkov, who's in there trying to get

29:38

the right guy. The

29:40

bad news is the shoes never stop dropping. It's

29:43

like an elder Marcus. You can Google that. It's

29:45

a lot of shoes, you know? Birkenstock

29:47

factory. I don't know. And I

29:49

just keep worrying that every time I say let's

29:52

go buy it, someone then the next day pick

29:54

up the paper and says, well, there's 17 nefarious

29:56

people who are doing bad things at Boeing. So

29:59

I want to skip that. I don't like that

30:01

headline risk. So I'm gonna tell you that

30:03

while I do think that it's probably bottoming

30:05

I don't think they know themselves

30:07

where the bottom is Brenda

30:09

in Virginia Brenda Booyah

30:13

Jimmy chill booyah that you'll

30:15

man in town Booyah,

30:18

I was wondering if you

30:20

thought that Paramount was a goodbye at this

30:22

level No, no, we're gonna we're gonna just

30:24

say that okay that that got a bid

30:26

and there's probably maybe not gonna be that

30:28

much of a bidding Work for it and

30:30

we're done with PPA RA and it was

30:32

nice to meet you Okay, even though Vikings

30:34

hot start out of the gates as he's

30:36

trading in a premium to his peers. I

30:40

Gotta say I'm willing to pay up here to

30:42

this day I just make me a winner watch

30:44

where my money and putting my post earnings and

30:46

puts it with graphics the drafting parlay Interest in

30:48

the NFL playoffs in the scoring quarter I'm gonna

30:50

dig into the ways for the stock that I

30:53

know you care about then we've been focused on

30:55

just how tough it is To be in the

30:57

restaurant business So I'm sharing how I tied up

30:59

the companies in this space and listening to stocks

31:01

I have my own and the ones I like

31:03

and the ones I can't even Of

31:05

course boy your boss Kramer

31:10

I My

31:23

sportsbook with the stockless one doubled last year rally another

31:25

40% in 2024 before Pete at $49

31:29

and changed in last March the following weeks

31:31

the stock pulled back to the high 30s

31:33

Although it's recovered to $42 as of today's

31:35

close then drafting supported and showed us why

31:38

it's not so hot the first place These

31:40

guys are in three cents per share else a little over 70

31:42

cents 70 cent loss I

31:45

mean and they had much higher than expected sales 53%

31:47

year-over-year even better management raising for

31:49

your forecast across the board Which is why

31:51

the stock's getting some lifting after hours still at several

31:54

points away from its March peak It's still bouncing differently

31:56

from with all-time high spent in 2021. So could it

31:58

have more? for upside

32:00

let's take a closer with jason roberts difficult

32:02

better chair mister of drafty for more about

32:04

what's that was not welcome back to

32:06

me about it and

32:10

i think this is a huge surprise profit to me

32:12

is that is what the make of it how did

32:14

it happen well

32:17

you know i think the business continues

32:19

to grow fast and uh... i think

32:22

he's executing great the market is growing

32:24

uh... and really just you know really pleased

32:26

with the performance continue our expectations

32:28

that's why we're here

32:33

uh... now really excited about the trajectory that i

32:35

do not play you like you would like but

32:37

like to know how things have changed since the

32:39

supreme court said again with the spot because it

32:41

seems like this in the system and meant

32:44

land that now it does seem to

32:46

be pretty rational it has

32:48

that changed i

32:51

think so i mean i think a lot of it

32:54

with the combination of you know early in the industry

32:56

and also we had a pretty

32:58

rash irrationally exuberant market in twenty twenty and

33:00

uh... twenty twenty one and i think that

33:02

you will be in now i

33:04

think everybody's very focused on the path of

33:06

profitability and also on continuing to grow and

33:08

i think we've all realized that things do

33:10

not have to be in conflict you can

33:12

both as we show this

33:14

quarter put up really nice growth numbers and

33:17

achieve profitability and continue to increase your margins

33:19

and that's what we've been so when you're

33:21

a customer acquisition for say north carolina it

33:23

becomes a pretty good decision based on the

33:26

lifetime value of a gamble that's

33:29

right so i mean we are still investing in

33:31

there you know in the quarter as you know

33:33

that we want for a while we also want

33:35

for a month both of those were negative for

33:37

us but overall uh... the company's

33:39

obviously doing really well i think exactly what you

33:41

just said uh... in so many other states happening

33:43

with the paybacks are there and that's why the

33:45

company's been able to achieve uh... just be that

33:47

a profitability i want to about something i think

33:49

a lot of people may not realize uh... that

33:52

there was a there was a gambler who also

33:54

played basketball jonte porter and i think

33:57

we he may not have understood and what the

33:59

players in sports may not understand is

34:01

that you work with the regulators. You

34:04

actually flag people. So perhaps maybe the

34:06

players should think twice and not be

34:09

banned for life because you're somewhat like

34:11

an SEC and a brokerage house. You're

34:15

mindful of the bets that are being made.

34:19

What you're talking about is exactly one

34:21

of the many benefits of the legal

34:23

market. You've seen

34:25

past scandals where sometimes things

34:28

can go on for years or even longer. And

34:31

finally, maybe it never gets caught. In

34:35

our legal regulated market, when we see

34:37

suspicious activity, you're absolutely right. We report

34:40

it. And look how quickly things

34:42

are. It's unfortunate it's happening. But I think you're

34:44

right. I think a few of these things happen

34:46

and the consequences are severe. More importantly, people realize

34:48

they can't get away with it. In a now

34:50

legal market, they're going to get caught. I

34:53

think you'll see a drastic decline.

34:55

I'm not going to say it'll never happen

34:57

again, but really showing

34:59

that we are catching this and that people are

35:01

suffering severe consequences for making these bad decisions, I

35:03

think, is the answer. Yeah, and I think it's

35:05

great because I think that in the old days,

35:07

we used to read about people who rigged things.

35:09

And they rigged and rigged and rigged and never

35:11

got caught because no one ever knew it was

35:13

all done in the dark. Now something is not

35:15

done in the dark. Dave

35:17

Portnoy has been on the show a bunch of times.

35:20

Everybody follows him on Twitter. He's

35:22

both a colleague now with the team,

35:24

but he's also been bragging that he's

35:26

been beating the heck out of you.

35:28

How do you rationalize the bet? How do you

35:30

deal with the fact that the guy is on a

35:32

hot streak even though he's gone with a lot of

35:34

the favors? Yeah,

35:37

you know, I thought Dave was just going

35:39

to cost a few bucks in marketing, but

35:41

it turns out he's winning a lot on

35:44

the betting side too. He's been on

35:46

an unreal hot streak. I mean, really

35:49

good. Good for him. I Think it's

35:51

A, you know, listen, obviously we love to

35:53

see people win. Some People are going to

35:55

win. Sometimes some people aren't. And You know,

35:57

it's actually an extra benefit when that person

35:59

happens. The big following in his getting a

36:01

nice for as a nice publicity of around

36:04

it so. I'm really happy for

36:06

Dave and glad to be partnering with.

36:08

Far as I don't blame you at

36:10

all, it is still the most fun

36:12

sites such sites a one is now.

36:14

I want to ask you where this

36:16

weekend me as the Kentucky Derby and

36:18

I hope one day I can just

36:20

go into my my camping site and

36:23

it's there. But you do have a

36:25

link up with Churchill Downs Correct? So

36:27

people once example tenth place bets own

36:29

of what's basically just s of one

36:31

a coalition you have with their maternal

36:33

how works. Here.

36:36

We have a separate app called Draft

36:38

Kings Horse On so you know you

36:40

can go in and play with drafting

36:42

for your rights to a partnership with

36:44

Churchill Downs and we're working actually on

36:46

integrating that better so won't have to

36:48

be. You know a separate thing. you

36:50

can use the same funds in the

36:52

same account, so that's something we're actively

36:54

working on and. Hopefully. By

36:56

next Kentucky Derby what was? I hope so

36:58

loses will go Nord Derby party to make

37:00

it easier. Now one this thing or international

37:03

I understand you might be interested as their

37:05

thoughts about you a he is a place

37:07

to go. Ah what's up with. right?

37:11

Now we're really focused on the U. S.

37:14

obviously We We. You know it's our job

37:16

to make sure we're aware of everything going

37:18

on around the world, and if there isn't

37:20

appropriate international opportunity that we should examine and

37:22

and consider them will do so by the

37:25

bars. Really high given we think it's actually

37:27

a big advantage for us that we have

37:29

this in a sole focus on the Us.

37:31

If you look at most of who were

37:33

competing with whether it's a totally separate line

37:35

of business or a different geography, there's something

37:38

else. For. Us this is it was entire

37:40

whole company. It is about winning in us

37:42

online gaming and I think there's a lot

37:44

of power to that angers lot of power

37:46

that focus on so you know it's not

37:48

to say we would never do anything and

37:50

certainly will continue to look at opportunities they

37:52

arise. that's rasa. grab a very high bar,

37:54

be very selective about any moves make internationally

37:56

and what to do with the right time

37:58

To fairness I just won't be. sure I

38:00

wanted to get that in there. My colleague,

38:02

contestant Brewer covers this industry very well, as you

38:04

know, and I certainly want to share anything she's given

38:06

us. Well, look, I want to thank you, and I

38:09

do want to disclose to people, I've had a relationship

38:11

with DraftKings, I have bull market fantasy, and

38:13

a lot of others, because look, I just, I like

38:16

fantasy, and I know that these guys have a great

38:18

fantasy site, so there we go. That's Jason Robbins, co-founder,

38:20

chairman, CEO of DraftKings, Jason, I love when you come

38:23

on the show. Thank you so much. I

38:26

love coming on, thank you for having me. I've been my second. When

38:30

we return, master the market. One

38:32

stock at a time. The lightning

38:35

round is up next. It

38:47

is time! I've got the light, I've got the limit. We're

38:49

up over there, and there's no way I can do this. I'm

38:51

going to do it. I'm going to do it. And

38:54

then I'm going to go, oh, are you

38:56

ready? I'm going to let me do this,

38:58

so with Jay and

39:00

Florida Jack. Big,

39:02

cool job, Jim. This is Jay from

39:04

Amelia Island, Florida. Absolutely.

39:08

I'm considering buying one main financial.

39:10

Okay, one main, look, that high

39:12

yield tells me that it's a

39:14

little bit riskier than people would

39:16

like, but it's a personal owner.

39:19

But you know what, I think the pay is going to

39:21

close at lower rates, so I think it's going to work for

39:23

you. Let's go to Camden in Massachusetts, Camden.

39:26

What's up, Jim, how you doing? I'm doing well, how are

39:29

you? I'm doing good, thank you.

39:32

So I just had a question about, with Soutahound's

39:34

recent partnerships and expansion into areas like automotive and

39:36

smart speakers, do you think its growth potential is

39:38

a strong enough to close to the top? It's

39:40

got to make money, it's losing money, it's been

39:43

around forever, it's not making money, it's no good

39:45

for me. Let's go to Camden in Missouri, Camden.

39:49

Hey, Jim, I love your show.

39:51

Thank you. Cracker

39:54

Bell, Old Country Stores. I

39:56

watched it drop steadily from...

40:00

Three years ago, about 170 to the 50s

40:03

now. Now it sports a 9% dividend.

40:05

They got good food, seem to have

40:08

good management, and they have

40:10

real estate on their balance. I know. Let me

40:12

do this. I myself have been amazed that the

40:14

stock has dropped like a rock, and I've been

40:16

amazed because I think they can cover that dividend.

40:18

We're going to do some work on that because

40:20

I used to recommend the stock, and it has

40:23

been horrendous, and I haven't looked at it in

40:25

many years, so we'll come back and do that

40:27

one. Let's go to Brendan in New Jersey. Brendan!

40:30

Hola, Jim. Hola. I

40:33

have a question about an

40:35

Argentinian company, which I know nothing

40:37

about. Alright, fair enough. After

40:40

this guy, Javier Mallet, got a last

40:42

name, I mean, the stock seems like

40:44

it's only going up, and I'm talking

40:46

about Grupo, Pinantiero, Felicia. Oh

40:49

man, this isn't another one that I don't understand. I'm

40:52

just looking at two in a row, but it's okay. I mean,

40:54

it's the right little guy around to say that's the way it

40:56

is. It's easy for me to go for me. I

40:58

gotta look into this company. Why is that selling

41:00

where it's selling? I have no idea. But I

41:03

will come back with an answer. Let's go to

41:05

Fernando in Florida. Fernando! Yes,

41:09

who are you from Orlando? Oh,

41:11

how's it going? Very good,

41:14

Mr. Kramer. How are you doing? I am doing

41:16

well, thank you. What's happening? My

41:19

question is GM. Get on motor. Time

41:21

to get out. I like GM very

41:23

much. It's inexpensive. Mary Bars do a

41:26

terrific job. I think you're in good

41:28

shape there. Let's go to Dan in

41:30

Illinois. Dan! Hello,

41:32

Mr. Kramer. This is Dan Old from Rockford,

41:34

Illinois. And how are you? Great.

41:37

How are you doing? Good, good. From my

41:39

friend, Sue Stewart's job. Let's go to work.

41:42

Alright. Screw Capital of the World and Home of

41:44

the Rockford Peaches. I

41:48

went to Laura's College in Dubuque, Iowa.

41:51

There's a headquarters of a regional bank

41:53

there called HTLF. And HTLF is a

41:55

very good regional bank. It's got good

41:58

numbers and it's very good. server

42:00

I think you're in good hands with that one let's

42:02

go to Jim in Florida Jim Jimmy

42:05

chill this is Jim from Les Chateau

42:07

and Pelican Marsh in Naples Florida Wow what

42:09

a mouthful okay okay what's up I

42:11

want to start off by thanking you

42:13

and your staff for all your help

42:15

throughout the years oh I've been watching

42:19

since cuddle on Kramer with my dad got

42:21

me to watch at a very young age

42:23

that's just people that's like 24 years ago

42:25

just people know my

42:28

question is on a wind and solar company which

42:30

I started acquiring several years ago I've added to

42:32

my position as it went down the stock is

42:34

down 46% over the year pays a good dividend

42:39

buy sell or hold any team it's

42:41

losing too much money maybe

42:44

I'll put them warm but I mean the reverence is a

42:46

business too much money for me to recommend I'm sorry and

42:48

that let's almost as if

42:51

we lose up the lightning

42:53

round is sponsored by sorrow

42:55

swab on which

42:58

stocks are feasting in the

43:03

battleground restaurant space when

43:05

we return what's

43:16

the toughest business I've ever tried my hand at

43:18

the restaurant business so much has to go right

43:21

labor checks service point of sale price of food

43:23

ours approach pickup delivery no matter what I did

43:25

I couldn't get the mix right the price of

43:27

food versus drink the number of hard drinkers thrown

43:30

by beer tequila mesto and chips versus families who

43:32

eat a tub of barely touch the liquor which

43:34

would be best where do the money where's the

43:36

money best made I thought it was liquor it

43:39

turned out to be families the whole thing's ridiculous

43:42

but one thing I did know when I was running a

43:44

restaurant my year-over-year and quarter over quarter

43:46

numbers I knew there was cold not to mention

43:48

my lake bunt business I drove people hard to

43:50

meet the numbers and in the end I see

43:52

the control of my best manager because he was

43:54

just better at it than I was I

43:57

bring this up because we're seeing some wildly diversion numbers

43:59

from the restaurant companies, and the difficulty of this

44:01

industry helps us learn why. The best way to analyze

44:03

restaurants is to be clinical. We look at same-store sales,

44:05

because if we just looked at actual sales and we've

44:08

thrown it off by any chain, it's adding lots of

44:10

new locations or closing lots of old ones. The same-store

44:12

sales, on the other hand, just don't lie. So who's

44:14

got the best numbers besides Brigar? We just mentioned them

44:17

earlier, which, by the way, is the total winner. First

44:20

by a mile is Wingstop. Yeah,

44:23

this had 21.6% domestic same-store sales

44:25

growth, which is inconceivable, especially because

44:27

they're also laughing some amazing numbers.

44:29

How does CEO Michael Skipworth do

44:31

it? All right, this is interesting.

44:33

I mean, wings are hot, right? Both

44:37

literally and fatedly. You see, the prices are low.

44:39

Most important, it's almost impossible to get a Wingstop

44:41

franchise without having already put up great numbers at

44:43

another restaurant chain. They're very good at screening the

44:45

franchisees. People put up, they

44:48

have to. They just can

44:50

get anyone they want. Why? Because

44:53

a Wingstop makes almost $2 million per

44:55

store. Second, Chipotle, plus 7%.

44:58

By the way, their market cap's almost the same as another company I'm

45:00

going to mention soon. Look,

45:03

Chipotle has got the growth came from higher

45:05

traffic rather than higher prices. We like that.

45:07

They did raise price and were offset higher

45:09

costs, though. But you know what? It

45:12

didn't matter, especially in California, where restaurants are being hit with a new

45:14

$20 minimum wage. As

45:16

they're in sales, that's amazing. Fresh ingredients,

45:18

terrific limited time offer, all-free, amazing ones.

45:21

Superior Square Management. Buy people, by the

45:23

way, who are in standard with stock.

45:26

I like that. Third, Domino's Pizza. It had

45:28

been right under previous magic, but two years ago,

45:30

Russell Weiner came in and lit a fire to

45:32

franchise a pizza chain. You know what? It's

45:35

working. The company's racking up an impressive

45:37

5.6% of the same-floor sales growth to the quarter.

45:39

I think his bold decision to link with Uber

45:41

Ease for delivery was brilliant. The prices here are

45:43

perfect for a cash-strapped consumer. I like

45:45

the banana peppers, and I like, I really

45:47

like their app is amazing. Next

45:50

up, Pat Doyle, who engineered a legendary turnaround at

45:52

Domino's 14 years ago, he's become exec chair of

45:54

Restaurant Brands International. I would not be surprised if

45:56

he's not really running the show over there, because

45:58

the numbers are that good. Tim Hortons is

46:00

up 6.9 percent. Bergkamp is up 3.8

46:02

percent. He's not happy with that. 3.9 percent in

46:05

the U.S. Popeyes up 5.7 percent and 6.2 percent

46:07

here in the U.S. Tim

46:10

Hortons don't fire because people love the coffee, the

46:12

pastries, the price. Throws working hard to

46:14

expand Popeyes as their chicken's been a big hit

46:16

overseas. But it's domestic same-store sales growth at 6.2

46:18

percent reminds me of the great numbers Popeyes used

46:21

to put up when it was still independent. Those

46:23

are the winners. What about the losers? Yum

46:25

Brands failed to deliver, put up minus 3

46:27

percent same-store sales globally. Taco Bell plus 2

46:30

percent in the U.S., put Pizza down 6

46:32

percent domestically, KFC down 7 percent. KFC

46:34

numbers stand in contrast to Wingstop, don't they? They

46:37

think that something's going to rise there. Taco Bell

46:39

offers terrific value and a nice remodeling effort. Pizza

46:41

has been a lager for ages. It's time to

46:43

just spin it off like

46:45

Red Lobster for DRI, for what

46:48

Gordon did. The real disappointment, though, was Starbucks.

46:50

With a 3 percent decline in same-store sales,

46:52

which took my breath away, frankly, the company's

46:54

shocking fall from grace is stunning. A

46:57

function of high price, terrible throughput, and

46:59

way too many, way, way

47:01

too many offerings for the staff to know how

47:03

to make them with any alacrity. The

47:05

real problem with Starbucks is those somehow management

47:07

believes business is better than ever. There

47:10

are industries where you can get away with being

47:12

in denial about your performance. But

47:15

as I know all too well, the restaurant

47:17

industry, it ain't one of them. I

47:19

like to say this always in the bull market somewhere, and

47:21

I promise I'll find it just for you right here on

47:23

Mad Money. I'm Jim Cramer, see you tomorrow. You guys are

47:26

all starting out. All

47:29

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47:31

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47:34

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