Mad Money w/ Jim Cramer 1/29/25

Summary

Mad Money with Jim Cramer – Episode Summary (January 29, 2025) Released on January 30, 2025

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1. Market Overview

Jim Cramer kicks off the episode with a candid assessment of the current stock market landscape.

• Market Performance:
  "Dow declining 137 points. S&P slipping .47%. Nasdaq losing 0.51%." ([00:02])

  Cramer highlights a mixed day where major indices experience declines, yet a late-day rally provides some relief.

• Sector Analysis:
  "Incredibly solid action in health care, telcos, banks, transports, and the travel leisure sectors." ([01:30])
  "Aerospace is on fire, people. That's a huge percentage of the market." ([01:35])

  Contrary to the usual tech-centric focus, Cramer emphasizes strength in traditionally underappreciated sectors.

• Magnificent Seven Commentary:
  "We're getting closer to the end of the movie. Maybe only three of the seven make it out." ([03:15])

  Expressing skepticism about the sustainability of top tech stocks, Cramer suggests a possible shakeout among the Magnificent Seven.

2. The Federal Reserve and Economic Outlook

Cramer delves into the Federal Reserve's stance on monetary policy and its implications for the economy and markets.

• Fed's Current Position:
  "Jay Powell once again made it clear that he's looking at the data to figure out what to do next." ([04:10])
  "We don't need to be in a hurry to do anything now." ([04:20])

  Highlighting Fed Chair Jerome Powell's data-dependent approach, Cramer notes the unexpected economic resilience post-Trump's election.

• Investor Sentiment:
  "Investors betting the Fed will keep cutting rates as the year goes on. They forget the Fed's data dependent." ([05:00])

  Cramer warns against the prevailing investor misconception that rate cuts are imminent, advising caution.

• Economic Indicators:
  "Inflation potentially coming down because housing costs are coming down, supermarkets getting slightly better, oil prices pulling back, auto prices going lower." ([05:40])

  Positive signs suggestive of a cooling inflationary environment bolster Cramer's optimistic outlook.

3. Stock Highlights and Sector Performance

Discussion on specific stocks and sectors showing notable performance or challenges.

• Microsoft:
  "Delivered a strong overall quarter but missed slightly on Azure's constant currency revenue growth." ([03:50])
  "Success will be determined by Microsoft's guidance post-earnings call."

  Cramer remains cautious, suggesting investors wait for clearer guidance before making trading decisions.

• Tesla:
  "As long as Elon Musk is behind the driver's seat, I want to own the stock." ([04:30])
  "Elon Musk delivers. He makes cars that could become our nation's de facto autonomous vehicle king." ([04:35])

  Strong confidence in Tesla's leadership and future prospects under Elon Musk.

• Meta (Facebook):
  "Confronted with potential challenges from China's software advancements on chip utilization." ([05:10])
  "Apple and Meta are becoming two of the hardest stocks to own." ([05:25])

  Concerns over geopolitical tensions and technological advancements impacting Meta and Apple.

4. Interviews with Industry Leaders

Cramer engages with CEOs to gain deeper insights into their companies' performances and strategies.

• Brinker International (Parent Company of Chili's) with CEO Kevin Hoffman
  Highlights:

  • Outstanding Performance:
    "31% same-store sales growth for the quarter." ([10:07])

  • Strategic Initiatives:
    "Teamwork, new food innovation, and strategic advertising are key drivers." ([11:03])

  • Future Plans:
    "Reimagining restaurants with the 'Modern Greenville' design to enhance guest experience." ([13:07])

  Notable Quote:
  "One of the few guys who do innovative things. Our business has accelerated." ([12:35])

• Kava Group with CEO Brett Shulman
  Highlights:

  • Growth Strategy:
    "Unique Mediterranean cuisine aligns with health and wellness trends." ([17:34])

  • Marketing and Expansion:
    "Collaboration with athletes like Gabby Thomas enhances brand visibility." ([18:36])
    "Expanding to 26 states and focusing on both urban and small-town markets." ([22:20])

  • Customer Experience:
    "Balancing technology with human connection to enhance the dining experience." ([20:47])

  Notable Quote:
  "Our loyalty program puts the power in your hands to earn and redeem points." ([21:52])

• Levi Strauss & Co. with CEO Michelle Goss
  Highlights:

  • Sales Growth:
    "12% year-over-year sales increase driven by DTC and wholesale channels." ([27:05])

  • Product Diversification:
    "Expanding beyond jeans to a full denim lifestyle, including tops and accessories." ([28:34])

  • Strategic Partnerships:
    "Early partnership with Beyoncé contributing to strong brand performance." ([31:21])

  Notable Quote:
  "We're on our way to becoming a destination for a full denim lifestyle." ([30:19])

5. Lightning Round

In the popular Lightning Round segment, Cramer offers quick buy, sell, or hold recommendations based on callers' inquiries.

• Caller from Illinois on Eaton:
  Recommendation: Hold
  "Long-term story remains strong despite some business segments weakening." ([06:19] – [07:32])

• Caller Megan from California on Dell:
  Recommendation: Wait and See
  "Fluid situation requires patience and further information before making a decision." ([07:54] – [08:44])

• Caller from Georgia on Lockheed Martin (RTX):
  Recommendation: Buy
  "Believes in the company's niche and future prospects despite current price challenges." ([35:46] – [38:16])

• Caller Dottie from Florida on Adma Biologics:
  Recommendation: Sell
  "Concerns over high P/E ratio and lack of a catalyst despite strong earnings." ([37:59] – [39:20])

• Caller Tom from Ohio on NovaCure:
  Recommendation: Sell
  "Advocates for waiting until the company shows profitability and growth beyond current flat revenues." ([39:22] – [40:00])

• Caller Ben from Florida on Keys Site (KEYS):
  Recommendation: Buy
  "Encourages holding and purchasing more shares due to the company's solid business model." ([38:18] – [39:22])

6. Industry Insights: Wine and Spirits Sector

Cramer provides an in-depth analysis of the struggling wine and spirits industry, highlighting major players and emerging challenges.

• Market Decline:
  "LVMH reported a 36% decline in wine and spirits in 2024." ([43:54])

• Challenges Faced:

  • Cannabis Competition: "Legal high alternatives without hangovers are taking market share."
  • Health Concerns: "Alcohol linked to increased cancer risks, reducing consumption."
  • Changing Consumer Preferences: "Younger generations prefer healthier lifestyles, limiting alcohol intake."
  • Pharmaceutical Influence: "GLP1 weight loss drugs curb alcohol cravings." ([43:54] – [44:20])

• Company Responses:
  "Innovation and creativity are essential for survival; traditional strategies are failing." ([43:54] – [44:20])

  Cramer underscores the need for liquor companies to innovate or risk obsolescence, emphasizing the importance of adapting to health trends and changing consumer behaviors.

7. Closing Remarks

Cramer wraps up the episode with final thoughts and a look ahead to future segments.

• Mad Money Disclaimer:
  "All opinions expressed by Jim Cramer on this podcast are solely his opinions and do not reflect those of CNBC or its affiliates." ([43:45] – [44:20])

• Teasers for Upcoming Segments:
  "Cramer is set to discuss the implications of Dry January on the wine and spirits industry in the following episode." ([39:20])

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Conclusion

In this episode of Mad Money with Jim Cramer, the host provides a comprehensive overview of the current stock market, emphasizing undervalued sectors outside of the traditional tech focus. Through insightful interviews with CEOs of Brinker International, Kava Group, and Levi Strauss & Co., Cramer highlights successful strategies in innovation, customer experience, and market expansion. The Lightning Round offers swift investment advice tailored to individual stock inquiries, while the in-depth analysis of the wine and spirits sector reveals significant industry challenges driven by health trends and shifting consumer preferences. Cramer's balanced approach combines skepticism with optimism, urging investors to remain informed and adaptable in a dynamic economic landscape.

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For those who missed the episode, this summary encapsulates the key discussions and expert insights shared by Jim Cramer and his guests, providing valuable takeaways for savvy investors.

Transcript

[Jim Cramer]

My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer America. People make friends. I'm just trying to save you some money here. My job, not just entertain, but trying to explain all this stuff. So call me, 1-800-743, CNBC. Tweet me at Jim Cramer. Fraught. That's the word we use in the office for days like today when so much seems to be going wrong, even if the averages weren't that terrible. Dow declining 137 points. S&P slipping.47%. Nasdaq losing 0.51%. We did catch a late day rally in the averages. Now we've got a budding revolt against some of the Magnificent Seven. They should feel like we're getting closer to the end of the movie. Maybe only three of the seven make it out. Pessimistic. We've got a Fed that seems to be backing off from its optimism about inflation. The economy's too strong to justify rate cuts. Pessimistic. Oh, and there's some incredibly solid action. The health care stocks, the telcos, the banks, the transports and the travel leisure stocks. Aerospace is on fire, by the way, people. That's a huge percentage of the market. But who cares, right? We only care about tech. Tech, tech, tech. I think that that's wrong. Let's break them down. Because if this market feels like a minefield, it's a minefield of our own. Choos. There are plenty of areas with clear paths if you're willing to look. First, let's take the Fed. Today. Jay Powell once again made it clear that he's looking at the data to figure out what to do next. Sure. A few months ago, they thought that the economy was slowing in an inordinate pace. They spoke about needing to be vigilant because they feared they would fall behind if the economy really took a header. But the economy didn't take a header. Instead, I think the Fed. Fed didn't and couldn't predict the burst of economic activity that came with the election of President Trump. It was a little uncanny. Is it kind of like a switch was flicked? The optimism came out of nowhere. But the business community was very happy about the election and their optimism was palpable. Big change from how they felt under Biden. That's why the Fed chief told us today he can't stay as concerned about a slowdown. As he said today, we don't need to be in a hurry to do anything now. At another time, we'd be thrilled to hear that message. But there are still tons of investors betting that, that the Fed will keep cutting rates as the year goes on. They forget that the Fed's data dependent and right now the data says do nothing. They thought more rate cuts were inevitable. So then what do they do? They sell stocks like crazy. They don't hear that the Fed's in a hurry. Remember my view, as long as the Fed's willing to cut, if the Fed economy deteriorates, we're in a good moment. We have good earnings. For that matter, more than that is more than monetary policy. Being good earnings makes stocks go higher. Good profits combined with a benign Fed equal higher stock prices. Optimistic, glass half full. You know, I hate this press conference after the Fed speaks. I mean, that's because the press has to ask the most provocative questions, mostly referencing President Trump's statements about the need to get interest rates down. At one point, I had a job. Like these reporters. I was early in my career penalous living in the back of my car. I always tried to make up some sort of wave, something that so threw off the person leading the press conference that I knew my pathetic bosses would be thrilled. They always were. I, as they say, no longer pay for dinner. I don't need to make a splash or even a ripple. I just want to tell the story. And the story is the Fed's going to have our backs if things get weak. Not going to be intimidated by the President. Economy gets too strong, Fed won't help us. I see inflation potentially coming down because I think housing costs are coming down, supermarkets getting slightly better, oils pulling, pulling back, auto prices going lower. And that's the data. I like the data. Here's what the press and many investors don't seem to realize. The delusional people want more rate cuts. But the Fed is only willing to give us that in a situation where the economy is falling apart. Fortunately, we're not in that situation. Optimistic. Think about how strong some sectors are when the Fed slows its rate cuts. That's nirvana for banks. That's where they make the most money. See those stocks? Health care has been lagging from far behind. Now I think it's playing catch up. Travel and leisure, I mean, what a bull market. No top. Which leaves the Mag 7. We always talk about these stocks as if they're invincible. As someone who shared in the creation of the term Mag7, all I can say is remember the Eli Wallace goons gunned down a bunch of them. Maybe we're near the end of the movie and some of the good guys, James Coburn, maybe Robert Vaughan, have met their demise. How about the ones that reported tonight? Microsoft delivered a strong overall quarter but the most closely watched figure is the constant currency revenue growth for Azure, their cloud infrastructure business that missed oh so slightly. In truth, the success of the quarter will be determined by Microsoft's guidance and that should come at the end of the earnings sale call which is going on right now. I ain't confident anyone trading a stock before that's putting the carp for the horse. As for Tesla, as long as Elon Musk is behind the driver's seat, I want to own the stock. He put up soft numbers tonight, but a terrific forecast for 2025. I'll go with that. Musk delivers. Moreover, he makes cars that could become our nation's de facto autonomous vehicle king if his close associate the President United States opens the federal interstate highway system to Tesla if only to keep us competitive with China. The best for that was easily met a platforms which delivered a colossal top and bottom ib tremendous free cash flow. Meadow also offered a conservative outlook lower than expected revenue for the current quarter. But after a quick pullback investors ignored the guidance which you have to do and sent the stock higher in after hours trading. Interesting what Zuckerberg did in that latest quarter. I think it's right to look past any conservative forecast. Which brings me back to the dilemma of in video right now we're trying to figure out what's really going on. Is the president going to take action against China banning the export of video chips? So far that seems to have created a mother necessity situation where Chinese companies say they've developed software that gets much more out of a single chip. So we have the political pressure and earnings pressure from the possibility that companies won't need as many expensive Nvidia chips. If Chinese software gets more out of them than ours, we don't know what's worth. We can't figure out the price earnings mobile so many are heading for the hills. The only problem we're going to step on a landmine between here and the hills. I say that in video and Apple are becoming two of the most hard stocks to own. I myself regard this as one of those moments Thomas Paine talked about. These are indeed the times that try men's souls for both in video and Apple shareholders. Is there a crisis at Apple? No, it's just facing a belief that in earnings and more important, its forecast will give tomorrow night. That it gives tomorrow. It will be wrong. It'll be actually terrible.

[Caller]

Sell, Sell.

[Jim Cramer]

Nvidia. I fear that order cancellations are trying to get they're trying to be priced into this stock. I don't know if it's done yet. When it does, the stocks will buy. I just can't divine that level without more information. I'm not even going to make a claim that I have it. They're not saying they're not so magnificent. 6. Maybe the okay 5 why don't we wait and see. But the bottom line, if you stop focusing exclusively on big tech then we got a great market going. And if all you care about is the mag 7 remember the movie, make sure you have the survivors and trust that more make it out of the village than we saw in the original. Let's go to Don in Illinois. Don. Hi Jim, thank you for taking my call. I'll cut to the chase. My question about is about Eaton. We all know about all the things that have been said about the data centers and recently there's Chevron and some partners planning for energy for them. What I don't know is is Eaton still a good buy at this price? Well, we bought some earlier during the cataclysm of selling for the trust lower. The stock has made a comeback. They do report on Friday. I don't want to play that game of putting a gun in my head and say how they'll do. It's a long term terrific story and I'm not going to be distracted from the idea that one of their businesses of the five megatrends are involved in has gotten a little bit weaker. Let's go to Megan in California. Megan. Hi Jim, how are you?

[Caller]

I am good.

[Jim Cramer]

Megan, thank you for taking my call. Of course. And thank you for all your help. I'm a first time caller and I'm a member of the club. Thank you. And my question is with all this noise about the deep seek, are you still as enthusiastic about Dell as you used to be? That is such a great question. I think about Dell and HP constantly. Like I think about Marvell. Dell has come down a huge amount. I have faith in Michael Dell. But you know what? I also have faith in waiting to see and learning more. And we've got a very fluid situation where all those who claim that they know exactly what's going to happen within video or Dell or HP are frankly as delusional as the people that I referenced earlier. You can't know the answer it's unknown, knowable, and that's where we are. Look, despite the uncertainty we're facing around big tech, there's still a lot to like in this market. Let's not, let's stay focused on all stocks, not just seven. Or maybe tonight. Chili's parent company Breaker, there's a good example, soared to a new high on its earnings beat. I'm sitting down with the CEO to see what sparked the big appetite for the stock today. Then I kick off my morning with behind the counter exclusive. Yes, I went behind the counter with Kava's founder and CEO. Don't miss this. Look at what's shaping Kava's post IPO growth is terrific and later on controversial. Levi's is on the move after earnings market right now doesn't like it. I think the market might be wrong. I've got the entire company's top risk to break down the quarter. And let's not claim what we know when we don't. Stay with Kramer. Don't miss a second of Mad Money. Follow imkramer on X. Have a question. Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to mad money.cnbc.com.

[Caller]

Well, you look.

[Jim Cramer]

At these incredible numbers from Brinker International, one of my faves, the parent company of Chili's Maggiano's. I've been patting the table this one for well over a year because Chili's gives people great value in an environment where the consumers become very sensitive price. But even I didn't expect results this good. Today Brinker reported a monster top and bottom line beat fueled by mind blowing 31% same store sales growth for the quarter Chili's brand that was possible extra impressive when you said at the end of the story looking for 20.5% growth which is not a low number yet they blew the estimates out of the water. No wonder Bricker stock Wore More than 16% is now up more than 340% over the past year. That's real money. Can it keep climbing? Let's talk about Kevin Hoffman. He's the guy who did it all. Presidency of Bricker International, president of Chili's Grill and Bar to get a better sense of the quarter. Kevin, welcome to my money.

[Caller]

Yeah, what a great day.

[Jim Cramer]

I got just blown away. I mean, how do you do those numbers? I mean, honestly, I'm astonished. Even as a restaurant owner. I don't know how you did it tell us.

[Caller]

Well, number one is teamwork. Right. We've got these amazing restaurant field teams. We've got an amazing restaurant support center at our home office. They're co designing plans about how to make the restaurants easier to operate. Their co designing plans on how we're going to create new food innovation and advertising to get new guests in. And it's all coming together and working, you know, progressively every quarter our results are getting better and better. Now they're being fueled by 19% traffic growth and quite frankly, we think the sky's the limit. We don't think this is the end. We think this is just the beginning of the Chili's turnaround.

[Jim Cramer]

The analyst always like, well, hold on, is this a flash of the bank? It asked them, whatever, maybe the ad campaign did it. You're the most consistent number getter in the whole industry. The other guys I'm worried about, I'm not worried about you. You were doing innovative things. Like for instance, everyone in the office knows about the triple dipper. They, they know from TikTok. They know from everything. You're, you're pervasive and you're ubiquitous. Yeah.

[Caller]

You know, one of the things that we talked about our investor day two years ago was how we were going to get back in culture. We were going to make Chili's relevant again. That means having relevant food, having a relevant experience, as well as getting back into advertising and being in a place that people consider where we're going to go tonight for drinks or we're going to go out for dinner. You know, that's taken hold. And what's happening is then we're in their consideration set. They're coming for the first time to Chili's and guess what? They're saying this is a great experience. We're coming back. It's part of a rotation now. And that's why you're going to see sustainable or you are seeing sustainable growth in our business.

[Jim Cramer]

Now when people say that there's the competition among some of the restaurants for share, that's not your world. That's the value competition just shooting each other. Yeah, I want a dinner out and I want it and I want to spend that much money.

[Caller]

Yeah, you know, here's what I would tell you. So I had my vice president operations on a call about three weeks ago and I looked them in the eye and I was like, hey guys, who's worried about the new 999 deal from a big competitor? They all started laughing and I'm like, why are you guys laughing? And they're like, because we've been in the gym working out the last two years, we know our service and our experience is so much better than that. So they can undercut us all they want. Nothing's going to happen. Our business and what's happened in the last quarter with that new offer, our business has accelerated. So we are not worried about being undercut, because value is not just about low price. It's also about what you get in the expense.

[Jim Cramer]

And how come you know where to put the ads, huh? It's obvious. You got it.

[Caller]

Oh, my God. Well, we got these two guys, George Felix and Jesse Johnson. They know how to place ads. They're really in the live sports that don't get, you know, recorded. And so we're constantly getting tons of impressions. People think we spend a lot more on our advertising than we do because those guys know how to pick shows.

[Jim Cramer]

Well, you know, I was asking the officer, I said, what's he doing? All this money. There was one guy who said, listen, you ought to remake the old stores. You're getting 4. 4 million average unit volume. I don't know if you need to. I mean, I think you answered the questions pretty well.

[Caller]

Well, you know, we started this journey. We're a $2.9 million AUV. Now we're at $4.2 million. You know, I always said if we can just get to four, these restaurants are going to operate a whole lot better. But here's the thing that's really exciting. We haven't touched reimaging our restaurants, and we've got 200 of our 1200 restaurant estate that they need some love. And we've got this new design that we're working on that we call the modern Greenville that I think is really going to excite guests. We're going to start really reimaging next year, and it's going to take a couple years to get there, but that's all.

[Jim Cramer]

But I like my chili. Why do I need it to look better? It never looked bad to me.

[Caller]

Well, the most important thing. Well, I think the majority of our state looks great, right? But it's really important to look best on block, right? So it's not just about great food and great service, but an atmosphere that people want to hang out and they want to come back time and time again. You know, it's very clear post Covid, people want a third place to come together. And Chili's is really answering that call right now.

[Jim Cramer]

Now, in the call, you spent some time imaginative. You're going to Go for it. Aren't you?

[Caller]

So Maggie is an exciting brand. So we got the unit economics a whole lot better. The average marginalist does $10 million, 18% margins. That's a lot of money per marginal. So we think there's a ton of white space. Maggiano's is the. Is the smallest brand that everybody thinks big. There's only 50 Maggiano's out there. So we've got a lot of white space to build Maggiano's. And our president, Dominique Berlin, that's exactly what he's working on right now, is what's the new prototype to build our first Maggiano in over a decade.

[Jim Cramer]

Okay. We know that alcohol sales for you are roughly flat. Most of them are down. Down big. Not you. Should I go and have the resolution breaker?

[Caller]

Well, it's January to get a couple of days left, and in February will be a new one. But, you know, I'll tell you, that's been a real key to us because at the end of the day, if you go to, you know, a bar around here, you might pay $20 for a margarita. Everybody knows you don't need an app, you don't need a coupon, you don't need to come for happy hour. You can always get a $6 Margaret of the month of Chili's. And it's always made with some premium tequila. And I gotta tell you, that's something that our guests really appreciate about us and they come to us for. And we're always gonna be there with that $6 margarita.

[Jim Cramer]

I did a lot of work on this before I saw you. It's eight. Everyone else is eight. The lowest I've seen is eight. Cause I did a lot of work because of my wife stuff. You are so underneath everybody in price, and it's premium. I don't know how you do it. You're really just an amazing restaurant.

[Caller]

You know, it's an important thing to make sure that guests, no matter how much money they have in their pocket, they can come enjoy a casual dining experience.

[Jim Cramer]

Oh, they sure do. I want to congrat and your team, one of the few guys by. Let me state I know the names of his team because he mentions them and he means it. And also, thank you for what you did for all the firefighters, which is very clear that was very important to you in the Southland.

[Caller]

Yeah, I appreciate you saying that. Yeah.

[Jim Cramer]

I want to thank Kevin Hoffman, president CEO of Brinker International. Symbol eat on a monster quarter. We have money's back, everybody. Coming up, Cramers getting behind the counter at Kava and catching up with the CEO to see if the chain can continue its growth in 2020. Next. Over the past couple of years, you've had a huge winning Kava Group. Yeah. The popular Mediterranean restaurant chain came public in the summer 2023. Started recommending around 30 a few months later. I just liked it so much. And now it's 135, thanks in part to a terrific 7.4% rally today. Still, after putting a terrific quarter in November that initially set the stock soaring to an all time high of 172, Kava's been hit with a wave of profit taking. That's okay. It happens. And it's still down huge from its highs, even if it's now rebounding. Now, look, I think the stock simply took a breather. It was too hot and now it's running again. But don't take it from me. Earlier today we got this terrific chance to speak with Brett Shulman. He's the co founder and CEO of Kava Group. He gets it. Take a look. Brett, I am so glad you have us here. I want to thank you.

[Brett Shulman]

Yeah. Thank you for coming.

[Jim Cramer]

Of course. Now, what I see here is something that resonates. I see value, but I see premium. There is almost no one able to pull that off. Why is it working so well?

[Brett Shulman]

I think it starts with our food, that unique Mediterranean cuisine where taste and health unites. And it's really at the nexus of these large secular trends. We see where the country is getting more diverse. People are seeking bolder, more adventurous flavors, but they're becoming increasingly interested in modern health and wellness trends and the impact that the food they're consuming is having on their body. And that's where our food comes in. Mediterranean diet, number one ranked diet for eight years running.

[Jim Cramer]

Well, you've got this special store and the reason I mentioned special store is you actually shot a commercial and the commercial is for TikTok and for Insta and people are talking about it is Gabby Thomas. I want you to tell us what it means.

[Brett Shulman]

Yeah. So right here at 350Hudson, we did our shoot with Gabby Thomas, who's our collaboration partner for our our new special curated bowls and pitas to start the new year. And the campaign is really about abundance, not restriction. And Gabby is a world class athlete, a Kava superfan, a health advocate, and just a world class human and an amazing representative of our brand.

[Jim Cramer]

Now what she's doing, I think is actually similar to what a lot of other people do, which is that they're taking in everything thing. This is not a transactional place. It's obviously a place of warmth. Just give me the choreography of a coffee store.

[Brett Shulman]

Yeah, so it goes to our Mediterranean way. That's certainly our bold flavored food. But it's also that welcoming hospitality where we want to welcome everyone to our table. And it's something we're working on through something called Project Soul, where we're really warming up our dining rooms with greenery, enhanced lighting, enhanced seating. Because we don't think about it as an either or. When you engage with us, either digital or physical, we think about it's an and we want you to have your channel of choice to come in depending on what your need is in the world that day, Whether you're in a hurry and you want to order on our digital channels, or you want to come in and have that walk the line experience and engage with our team members and have that great cava hospitality and then share a meal in our dining room with us.

[Jim Cramer]

Funny, because of course, people know that Chipotle as a small experience and they're always worth emulating. And we've got Ron Shaikh as part of the bloodlines here. So there are many good things before Kava ever came. Now, I don't want to talk short term numbers because that's you're in the cry period. But what you've done historically has produced well above average profit margins, incredible growth, and something that I guess works everywhere. This is a regional to national story. And there are many more states and places to put new carvers.

[Brett Shulman]

Yeah, that's what gets so is so exciting for us. We're in 26 states in the District of Columbia. We're here in Manhattan, we're in Boston. But we're also in places like Fayetteville, Arkansas and Fayetteville, North Carolina. So it works in the city, it works in small towns. And look, I think it's a testament to the broad appeal of that cuisine where anyone can come in, whether you're looking to have a vegan or vegetarian diet, or you just want spicy lamb meatballs and crazy feta. Everybody can come in, be satisfied, and walk out feeling better about what they eat.

[Jim Cramer]

Now, a lot of people are talking about technology and how it's making restaurants better. I play technology in order to be able to make it so that the network people have an advantage when things go down in terms of the amount of food they need. But beyond that, transaction and technology don't necessarily improve the experience.

[Brett Shulman]

Yeah, I think this is really important. We talk about technology or Automation to enhance the human experience, not replace it. On our main serving line, you're going to see our human team members really delivering on that kava hospitality and having that human connection. Because, look, as screens and automation and kiosks and all these things and technology infiltrate our everyday life and the front lines of many concepts, I think people are feeling that void of human connection and they're gravitating to places that are able to deliver on that. And as I said earlier, it's not an either or for us. We think we can have that great interactive, physical human experience. And then if you want to opt into a digital channel, we have that for you too. But we put the power in your hands to opt into your channel of choice.

[Jim Cramer]

Do people have their own cava?

[Brett Shulman]

Yes, everybody's got their home cover. But more and more as we spread across the country, we see them as they're in traveling or visiting family and friends somewhere else. They've got their go to kava that they, when they see it, they know what kind of meal they're going to get.

[Jim Cramer]

And so that could also mean that they are loyal. You've got loyalty, and it's looking like that. That program is working spectacularly.

[Brett Shulman]

Yes. So we relaunched our reimagined loyalty program at the end of last year. It's something we've been wanting to do for a number of years, but we've got to prioritize every year how many things we can do. But it's a new earn and bank points model and it has a catalog of reward redemption options. So again, putting the power in your hands that you can earn and bank those points and then redeem them for your favorite kava item or some new other rewards that we're excited to bring to you later this year.

[Jim Cramer]

Now, South Florida. Yeah, tell me about it.

[Brett Shulman]

Yeah, it's coming in 2025. We're excited. That's one of our new big markets. We're going to expand to where we're currently up in Orlando and Tampa and Jacksonville. We're going to move down into South Florida later this year. And then we opened Chicago last year, our first foray into the upper Midwest. And excited to have further expansion in the upper Midwest this year.

[Jim Cramer]

Now, I think you're still driving. Well, of course you're driving innovation. But I want to talk about the new menu items. What steak? How's that working?

[Brett Shulman]

Steak's going great. You know, we used to have grilled meatballs on the menu. We took it off and we knew that our guests viewed that there was a perceived gap, that they wanted a beef item, a lean protein that they could opt into. And so my partner, Ted Xeno Christos, you our chief concept officer, my co founder, he leads our great exceptional culinary team. And they worked to deliver a phenomenal steak product that's been incredibly well received and that is a permanent item on the menu.

[Jim Cramer]

Okay. So I think many people may say, who is this Brett? What is his background? Actually, you had kind of a back way to do it. You start with finance, you want to get things right. And that turned out to be a great way to be profitable. How come you went into the restaurant business? You could have gone to go with Sachs?

[Brett Shulman]

Yeah, it's a long, windy road and, you know, I actually started waiting tables help, helping to pay my way through college. So me and the guys, my three co founders are all sons of Greek immigrants and all grew up kind of in the restaurant industry. And then after college, I went into finance for about 10 years. But I want to do something more impactful and, and, you know, build something that could have a positive impact on the people around me. And I met the guys, as fate would have it, and they had started this brand out of a single full service restaurant with similar philosophies where they had mothers who worked in the restaurant industry and experienced the stereotype of how people were treated poorly. And so we wanted to create a brand where our team members could grow personally and professionally and have a career, not just employment, while making this healthful, great food that's solving a problem for our guests and making a positive impact on the communities we serve.

[Jim Cramer]

Well, let's talk about the line. A lot of people feel, listen, I want to get in and get out. Yeah, there is something to be said about a line and about sitting. It's not just to go. It's. This is a good experience here.

[Brett Shulman]

We say fast enough, right?

[Jim Cramer]

Fast and fast enough.

[Brett Shulman]

It's, you know, it's, that is worth.

[Jim Cramer]

Thinking about for a second. Fast enough is what people, they people are willing to pay a premium for. Fast enough.

[Brett Shulman]

Yeah, well, we, you know, it's many people's first time interacting with our brand or eating Mediterranean food. And we don't want them to feel rushed or hurried. We're also mindful in many of our restaurants, we have lines to the door and we don't want people feeling like, I can't go to Cabo today because the line's too long and it's going to take too long. So we also work behind the scenes to help our team members naturally move that speed of service. But we say speed and service. We can't have that speed come at the expense of the service. So we're always trying to strike that balance.

[Jim Cramer]

I just want finish with the notion of health and wellness as something that people want in 2025 resonating more than ever.

[Brett Shulman]

More than ever. And I think the key is people don't want to have to do it and make compromises or have restrictions. And that's where our cuisine comes in, where you can be satisfied. You can have this bold flavor food. And oh, by the way, you're eating better.

[Jim Cramer]

Well, I can tell you that the people at Mad Money may be your best customers. So thank you very much for offering what you do. Fred Schulmer's co founder and CEO Abu, thank you so much for the time.

[Brett Shulman]

Appreciate it.

[Jim Cramer]

Coming up, fresh off its earnings report, Kramer's checking in with the CEO of Levi Strauss to see if the company's stock is still in style. Next, what do you make of these numbers from Levi Strauss & Co. The economy icon. Iconic denim company stocks been struggling since it reported a mixed quarter early October, stabilized in recent weeks. So can this quarter change the narrative? Tonight, Levi's reported some of the best sales growth in years, up 12% year over year. Real strength in the Americas and Europe as well as the company's direct to consumer channels. They delivered a much higher than expected gross margin. I love that record number. Because of some elevated expenses though, they only delivered a 2 cent earnings beat off a 48 cent basis. I'll take that. More important measurements, full year forecast for 2025, let's call it noisy. Top and bottom line numbers seem a little weak, but all that's from divestitures, from currency fluctuations, tax rates shouldn't matter. I think it was good, but I'm not sure it was good enough. We got to talk to other people and see. Why don't we just talk to the CEO, Michelle Goss. She's the president, CEO of Levi Strauss and Company. Learn more. Ms. Goss, welcome back to Man Money.

[Michelle Goss]

Hi Jim. Great to be here. Thanks for having me.

[Jim Cramer]

Well, Michelle, it's been one year. It's been one year since you took the job. Why don't you tell us what's accomplished in the first year and what you think could be accomplished next year.

[Michelle Goss]

Yes, you bet. Well, first I'd say I couldn't be happier with how we're ending the year. You were just adding some comments around that, but we're finishing the year strong. Reported sales up 12% but as we're now reporting our organic growth up 8% and that really is to take account of either one time events or things like foreign currency headwinds as you were just speaking to. So the 8% for us takes into account the exit of Denison, exit of our footwear business and importantly this quarter, the impact of the 53rd week. By all measures, it was a strong quarter driven by the health of our DTC business wholesale returning to growth strength in men's business, women's business really across the board and doing all this, you know, as we complete this year really was a pivotal year for the company. Starting the next chapter for Ellis and co. As we become a full omnichannel retailer, rewire the company that way. And importantly, not just be about great jeans, but head to toe denim lifestyle. And it's working. Our strategies are working.

[Jim Cramer]

I think it is. I'm glad that you brought up the dtc. I was, you know, of course bruising the site in advance of our interview. I saw a lot more than just jeans, a lot of cool stuff for men. Women. I don't know. I think some women who are in Lulu ought to be thinking about wearing jeans. I want to get your sense of where the customers are coming from and whether they're liking your additional offerings besides just traditional denim.

[Michelle Goss]

Well, based on the numbers, Jim, I think they like what we're offering. I mean, we really ramped up our innovation pipeline. We have a much more expensive, expanded, what I'll call lifestyle opera offering. But it's tops, its bottoms, its dresses, its skirt, of course all rooted in denim. But our consumers are giving us permission to play in a much broader market. And that's a lot of what's driving the women's business. I mean, the women's business was up 12% overall, 20% in our DTC channel, which is that's kind of the first mover. That's where we really get to bring the full expression of the brand. What's really driving the bottoms business is still loose and baggy. We're seeing that with women. We just introduced a new style called the XL wide leg for men. While that trend took a little longer, we're also seeing that now drive the men's business with some new fits as well. So we're on our way. I mean, when I think about our results, you know, certainly the top line. But we've also at the same time, Jim, been focused on the structural economics of the business. Right. As we make this pivot to dtc. You saw our gross margins record for the quarter at 60 plus percent record for the year. And we're planning for those to go even higher. So I would say this business is a lot stronger and healthier today than it was even a year ago.

[Jim Cramer]

Okay. I'm always concerned that I want more women's business because men periodically all they do, sometimes they only want one pair. I mean, they're probably aggravating for you in some ways. But we watch the halftime show, we saw Beyonce. It's so obvious that when you have a song called Levi's Jesus, it's a top of mind. What kind of where. What's your ideal breakdown between men and women? What would make it so you're the most profitable?

[Michelle Goss]

Yeah, well, we were making progress. So today our women's business is about 36% of our total business. But that should be half right. When we just think about the broader apparel landscape, 36 is up quite significantly from just a couple of years ago. But there's so much Runway ahead, and it starts with bottoms. We are always going to start our business with great denim bottoms. But as we were talking, there's so much more where we can go for both men and women. And that's what's exciting to see. Even our tops business, which we've been on a big innovation journey on that front, growing in both men's and women's. And people historically haven't thought about Levi's for tops. They are now. We're becoming a destination for it.

[Jim Cramer]

Well, yeah, I was going to ask you also about belts. I mean, I think when you. This is something my wife is saying, listen, we're wearing wide now. I'm saying now you're wearing skinny. People in the office wearing skinny. But if you're wearing wide, you need a belt. And I know that Beyonce is wearing a Levi's belt. Can you make some money off those accessories?

[Michelle Goss]

Yeah, absolutely. When we talk about head to toe denim lifestyle, we do see accessories as an opportunity for us as well. You know, that's probably a little longer term. Although we do sell belts today. But right now our focus is really on those key categories like tops and dresses, outerwear. You know, we talked about the fourth quarter, but Jim, I would just say we had a great holiday. So our holiday actually goes into Q1 a little bit because our fiscal year ends in a. So November, December combined, we were up 8%. And that was driven by the bottoms business, but also by everything else denim, including, including tops and outerwear. Like I said. You know, I have to also comment on your. Your comment about Beyonce, we're early in our partnership with her. That's going to go throughout most of this year. And it's having an effect. I mean, these strong numbers we're posting, we are seeing a Beyonce effect. So very happy about.

[Jim Cramer]

I have to believe that there will be a move away from the, from the Lulu's and toward you for both, for both. Tops and bottom. Where do you get your new customers from when you see the women's position go higher?

[Michelle Goss]

Yeah. So I think there's a couple opportunities. One is to continue to drive more frequency with our existing consumers. You know, we have data on them and there's still a lot of room for them to visit at Levi's one or two more times a year. You know, the great news for Levi's is we are fully omnichannel. We've got our stores, we've got E Commerce and we have our wholesale partners. So you can get Levi's in lots of great places. So we want to be there for our consumers anywhere they want to buy a pair of jeans. So it's existing customers and then to your point, new customers. And I think the real upside for us is the female customer. Both exist, existing and new, and also the younger consumer. We've done a lot to drive relevance and we're seeing that play out. And so when we think about the trends, which, you know, I have to say right now in denim, it's sort of anything goes. Loose and baggy are trending that started with that younger generation. But everybody's wearing loose and baggy. Yet, you know, there's still, there's still room to wear skinny jeans on occasion. And we see our customers still gravitating to that. So it's important for us as the category leader to be driving the trends. And I'm happy to say we are.

[Jim Cramer]

Well, I got to tell you, I was very impressed with the numbers. I love that kind of revenue growth. You're doing so much that is right one year in. Congratulations. Happy anniversary. Michelle Goss, President CEO of Levi Strauss. I love it when you come on the show. Thank you.

[Michelle Goss]

Thanks so much, Jim.

[Jim Cramer]

Absolutely. May have wanted to be back with you. Coming up, lightning doesn't just strike twice. Price in Cramerica. Thanks for taking my call. It strikes every day. Kramer is back in a flash with your questions. Next. It is time. It's time for the white room conventional. Bye bye bye my staff. And then the lightning round is over. Are you ready, Ski Dad? Time to the light round. Crazy. I'm going to start with Jim in Georgia Jim. Hello, Jim. I'm a club member, three time caller, infantry veteran, which will become that, that'll, you'll understand why I mentioned that in a minute. I, I started buying defense stocks back in late 23 and did pretty well. Once President Trump was elected, though, there came to be this situation where you've got Doge on the one hand looking for efficiency and nobody's ever caused the military industrial complex to be efficient. Nobody's ever called them that. And at the same time, you know, it's a very dangerous world and the defense needs to be caught up. So. And the only thing we've heard in specifics is the iron dome, which is, I think. And that's RTX. Yes. And, and, and, and L3 Harris, Northrop Grumman, RTX and then Lockheed Martin, which I'm asking you about specifically. Okay, well, first, Jim, want to thank you for your service and I think your question, being a member of the club, your question is an intriguing one.

[Caller]

Why?

[Jim Cramer]

Lockheed Martin is a stock that frankly has come down so much that it's getting hard for me to dislike it with James Takelit at the top. However, I think the administration is far more focused on the idea of a Palantir like solution to procurement and that would be very bad for all the companies you just mentioned. So I do not want to get in the way of the Palantir Buzzsaw because that's very close to Elon Musk and that's where I am. Let's go to Dottie in Florida. Dottie. Hi Jim. How are you? I am good, Dottie, how about you? I'm great. First of all, I'd like to thank you for continually reminding us how to be good investors. That's all I want. That's all I want. I bought Adma biologics at about 14. It proceeded to go up to about 24 and then came down to 16. It beat its earnings last quarter. It guided up. It has strong buys and buys on it. Shall I buy more? Sell. Okay, so it does have earnings, which is terrific difference. Not that much of a spec. And it does great blood plasma work. My problem is I don't have a catalyst. I think the stock at 40 times earnings is a little too rich. I would wait for it to come down before I would pull the trigger. Let's go to Tom in Ohio. Tom? Oh yeah, Jim, nice to talk to you again. Yes, it is. It's great to have you on the show. Yeah. I was considering purchasing a stock called NovaCure and what I like about it is their pipeline of pancreatic cancer drugs. I know you're probably going to tell me to buy Eli Lilly, but I already own it and I'm looking to diversify and get some other biotech stuff. I'll tell you, I. I used to be a very big fan of this company. But you know what? I have watched them for years and years and they're not making money. And I just think that they should be making money. They've got good revenues but they're kind of flat. Let's see some money made by Novocure and then we can get behind it. I need to go to Ben in Florida. Ben. Mr. Kramer, did you have a good Sunday afternoon? You bet I did. You bet I did. Thank you for referencing that. I know people coming to New Orleans. Mapa, make sure that you get Nolan Smith and Jaylen Carr on that plane.

[Caller]

You don't want.

[Jim Cramer]

I will be there. I will be there to thank the team. And thank you. How can I help? Listen, I've been sitting on keys K E Y S key site for about two years, watched it go down, bought some more to Eva down my price. I'm now about dead even.

[Caller]

Should I hold on?

[Jim Cramer]

We want this one. We want this one. This is a company that has solution. First of all, it's not a company expensive at all. And second, anything that measures reminds me of like Agile. That's another life they are doing. I have a terrific business, niche business. I like it and I think you should own it and I think you should buy it. And that, ladies and gentlemen, conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up as Dry January comes to a close is now the time to invest in the wine and spirit stocks? Kramer's giving you his take next tomorrow. Kick off the trading day with Squawk on the Street. Live from post nine at the nyse. Somehow went from I don't even know warning to glassworks to David. Just Google the roadmaps and you'll see where I'm going. You're on Uber. Switch. He's going on Uber.

[Brett Shulman]

We do need AI to say, what did Jim just say?

[Jim Cramer]

It all starts at 9am Eastern. Just two more days. That's what the wine and spirits people must be thinking as you approach the end of this disaster of a month. A month we call Dry January. But we never knew it was going to be as dry as Death Valley or the Sahara. So will Dry January leading to dry February? I don't know. I was praying that LVMH company Represents the best. The best would tell us they had a terrific wine and spirits quarter putting this story to bed. But sadly, that's not what happened last night. LVMH, Best of the best reported a 36% decline in wine and spirits in 2024. For now, that's a number that must send a shudder through anyone involved the liquor business. These are practically prohibition numbers. And keep in mind LVMH has some amazing brands. Hennessy, Glenn Moragi, Chateau Cheval Blanc, Colgin, the Collision Art Bag, Belvedere Vodka. I'm giving them a pass on their high end champagnes, Dom Perignon, Vivaco, because these are holding up. But that's not enough to support this entire business. Wow. Of course, LVMH is not alone. The numbers from Brown Foreman, which owns Jack Daniels, Woodford Reserve, Old Forester, Herodora and the one we call El Jimador are abysmal. Diageo has been a horrendous stock befits a company that makes the Johnny Walker and all his cousins. The Captain, Tanqueray, Don Julio, Casa Amigos, Kettle One, Crown Royal and Bullet, the wine and spirits from Constellation branches. So challenged. I wish they just sold the business a long time ago. Just a very bad miss. Beers holding up okay, but not enough to make Wall street like the stock. Oh man, that stock and my channel trust stuck with it. The worst thing about all this is that for the most part not one of these liquor companies is willing to admit that they could be facing existential threat like lvmh. They say we're experiencing a post Covid normalization because of excessive alcohol consumption during the pandemic. That's why I say they're holding their breath to see if the mocktails and the zero alcohol beers quickly disappear by Saturday when January comes to an end. I think these companies are about to have a rude awakening when dry January turns into drier than expected February. And then we might even spiral from there. What's really happened to the alcohol business? Okay, there's this litany of these companies ignore. First, cannabis is so darn cheap and in many states it gives you legal high without a hangover. We're no longer living in a smoky in the bandit world. The future belongs to how and Kumar. Second, the Surgeon General just told us that alcohol is linked to increased risk of seven types of cancer including breast and liver cancer among others. There's no safe level of alcohol consumption when we're talking cancer prevention. Not good for the heavy social trigger. Third, young people just don't like to drink as much as they used to. Some profess health worries. Others know that the liquor companies jacked up prices during the pandemic and now refuse to take them down. Fourth, ubiquitous GLP1 weight loss drugs can stop utilizing your craving for alcohol in its tracks. The studies are doing show that heavy drinkers seem to throttle back drinking when they go 1 ozempic or mojaro. Now that's a lot of serious negatives. So what's the hope now? Look, I once ran a bar and I've seen what's happened to my wife's mezcal. So my hope is that like everything else, newness can crash through the ennui and the resistance. You have to create intriguing drinks. Kind of what they do with breakers. You have to crack with your stories. You have to crack craft something. You have to craft the craft. You must have a value price point. I don't think enough people in the industry realize that the good old days of endless price increases and no resistance and zero creativity are over. I do believe social drinking will always have a place in our lives. There's no way that we're phasing out booze entirely. But rather than thinking that this is just post Covid normalization and expecting people to flock back into January, the much bigger fury is that alcohol joins to tobacco on the list of things that can't be accepted by anyone trying to be healthy. I think alcohol dodged a real big bullet when there was no skull and crossbones added to the label during the Biden administration. Who knows what Bobby Kennedy Jr. Might do if he gets the health and Human services job no matter what? Let's drop the normalization rap, please. This is not normal. The liquor companies need to be clever, thoughtful and exciting or they should just go find another business. Alex says always bull market. Sell my problems just for you Right here on Mad Money. I'm Jim Cramer. See you tomorrow.

[Caller]

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[Jim Cramer]

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[Caller]

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[Jim Cramer]

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[Caller]

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[Jim Cramer]

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[Caller]

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[Jim Cramer]

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