Mad Money w/ Jim Cramer 3/6/25

Summary

Mad Money w/ Jim Cramer – Episode Summary (March 6, 2025)

Podcast Information:

• Title: Mad Money w/ Jim Cramer
• Host: CNBC’s Jim Cramer
• Episode Release Date: March 7, 2025
• Episode Title: Mad Money w/ Jim Cramer 3/6/25

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Introduction

In this episode of "Mad Money," host Jim Cramer delves deep into the current state of the stock market, expressing his concerns over recent economic policies and their impact on investor confidence. The episode features insightful discussions with industry titans Ken Langone, Julie Messina (CEO of Cracker Barrel), and Richard Dixon (President & CEO of Gap Inc.), alongside a comparative analysis of U.S. and European markets.

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Market Analysis and Critique

Jim Cramer opens the show with a critical view of President Trump's economic strategies, particularly focusing on the administration's tariff policies and their adverse effects on the stock market. He laments the significant drops across major indices:

"We do not need to have days like today where The Dow drops 428 points, S&P plunges 1.78% and the Nasdaq plummets 2.61%, putting that index down 10% from its 52-week high." (02:15)

Cramer acknowledges the President's efforts to address issues like illegal immigration and fentanyl trafficking but argues that the approach has sown unnecessary fear and uncertainty among investors:

"He can implement his agenda without destroying investor confidence and causing the stock market to roll over." (04:00)

He emphasizes the need for clear communication and gradual policy implementation to maintain market stability.

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Interview with Ken Langone

Ken Langone, co-founder of Home Depot and chairman of Infinite Associates, shares his seasoned perspective on navigating tumultuous market conditions. Langone advocates for long-term investing in solid companies with strong management:

"If you don't have stocks on margin and you've got solid companies with great managements with good balance sheets... you're right. The storm may be stormy." (18:39)

Highlighting his own investment philosophy, Langone underscores the importance of holding quality stocks through market volatility, citing his successful long-term holdings in companies like Eli Lilly and Home Depot.

When discussing the current tariff policies, Langone draws parallels with post-World War II economic strategies, advocating for balanced trade measures:

"Tariffs that we charge on German cars into America are 2.5% and the tariff they charge on our cars is 10%. Now, I tell you why I think it's foolish." (16:05)

He cautions against disproportionate tariffs that hinder fair trade and advocate for a level playing field to foster economic growth.

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Interview with Julie Messina, CEO of Cracker Barrel

Julie Messina provides an optimistic outlook on Cracker Barrel's recent financial performance and strategic initiatives aimed at revitalizing the brand. The company has reported a "tremendous quarter," with significant beats in both top and bottom lines, and has raised its full-year forecast despite challenging economic conditions:

"Huge, huge thank you to them. And we're so pleased... we're able to raise guidance." (26:37)

Messina discusses the importance of balancing brand loyalty with innovation, ensuring that while the traditional customer base remains satisfied, new customers are also attracted through refined branding and enhanced menu offerings:

"We're refining the brand and enhancing the menu without alienating the people who've always loved Cracker Barrel." (27:22)

She highlights successful supply chain management as a key factor in maintaining price points and meeting customer expectations:

"We have a great Q4. So even with what's happening out there right now, that we're able to really raise our guidance and deliver a great year for our shareholders." (28:01)

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Interview with Richard Dixon, President & CEO of Gap Inc.

Richard Dixon shares Gap Inc.’s impressive quarterly performance, emphasizing the robust growth across all four of its brands: Gap, Old Navy, Banana Republic, and Athleta. Despite a generally declining apparel industry, Gap Inc. has achieved positive same-store sales and market share gains:

"All four brands gaining market share... even against a backdrop of a declining apparel industry." (33:12)

Dixon attributes this success to strategic brand differentiation and innovation, particularly highlighting the Banana Republic's collaboration with "White Lotus" and Athleta's positioning in the women's activewear market:

"The White Lotus collaboration with Banana Republic is phenomenal... we're reentering the cultural conversation." (36:02)

He underscores the importance of understanding consumer behavior and continuously adapting to meet evolving demands, ensuring that Gap Inc. remains resilient and competitive in a fluctuating market.

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Comparative Market Performance: US vs. Europe

Cramer conducts a thorough analysis comparing the U.S. stock market's underperformance against several European counterparts. He highlights that countries like Germany, Spain, and Italy are experiencing significant growth due to supportive economic policies:

"Germany up 17. Spain up 14. Italy up 13.7. France up 11. South Korea up 7." (43:18)

Key Factors Driving European Performance:

1. Monetary Policy: The European Central Bank's aggressive interest rate cuts have stimulated demand.
2. Defense Spending: Massive investments in defense have acted as economic stimulants.
3. Government Intervention: Proactive measures to support key industries and mitigate economic slowdowns.

In contrast, Cramer criticizes the U.S. for its policy-induced uncertainties, which he believes are stifling investor confidence and economic growth:

"Without these endless intermittent volleys, we'll remain in the White House, where we will get every day lower prices for the Dow Jones, the S&P, and most savagely, the NASDAQ 100." (43:18)

He advocates for a more measured and transparent approach to economic policies to restore market stability and competitiveness.

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Lightning Round Highlights

In the Lightning Round segment, Cramer offers quick buy, sell, or hold recommendations based on caller inquiries:

1. Venu (NYSE American Symbol VENU):

   • Cramer’s Take: Highlighted for disrupting the multi-billion dollar live music industry with impressive asset growth.
   • Notable Quote: "Venu is a venue on the NYSE American... $200 million expected in 2025." (00:00)

2. US Steel:

   • Cramer’s Take: Recommended holding, emphasizing the company’s solid foundation.
   • Notable Quote: "They're a really good company, does consulting, management... a winner." (08:07)

3. Eli Lilly:

   • Cramer’s Take: Advises to stay long on the stock due to its strong pharmaceutical pipeline.
   • Notable Quote: "Eli Lilly's got the solution that may be good for everything from Alzheimer's to heart disease." (08:16)

4. Cracker Barrel:

   • Cramer’s Take: Encourages buying, noting the company's exceptional quarterly performance and turnaround.
   • Notable Quote: "Cracker Barrel just reported a tremendous quarter... could this be the buying opportunity now?" (25:51)

5. Tetra Tech (TJK):

   • Cramer’s Take: Suggested to hold, citing the company's strong management and consulting services despite short-term volatility.
   • Notable Quote: "It's a really good company... please do not sell that." (41:15)

6. DGNs:

   • Cramer’s Take: Advised against holding due to lack of profitability.
   • Notable Quote: "I need to see profits. I'm not seeing profits. Therefore I'm not going there." (42:56)

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Conclusion

Jim Cramer wraps up the episode by reiterating the stark contrast between the U.S. and European markets, urging for strategic policy adjustments to foster economic growth and investor confidence in the United States. He remains optimistic, promising to continue identifying bull markets for his listeners:

"I like to say there's always a bull market somewhere. I promise I'd find it just for you right here on My Money." (43:18)

Cramer emphasizes the importance of staying informed and adaptable in a rapidly changing economic landscape, encouraging investors to seek opportunities amidst the uncertainty.

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Key Takeaways

• Economic Policies Impact Markets: Cramer's critique of abrupt tariff implementations highlights the need for balanced and transparent policy-making to maintain market stability.

• Long-Term Investing Over Short-Term Volatility: Insights from Ken Langone and Julie Messina reinforce the value of holding quality stocks and focusing on fundamental company performance.

• Successful Turnarounds Are Possible: Both Cracker Barrel and Gap Inc. demonstrate that strategic innovation and brand revitalization can lead to significant market performance improvements, even in challenging economic climates.

• Global Market Dynamics: The robust performance of European markets underscores the effectiveness of proactive economic measures, suggesting potential strategies for the U.S. to emulate.

• Diverse Investment Strategies: The Lightning Round segment provides practical buy, sell, and hold recommendations, emphasizing the importance of tailored investment strategies based on individual company performance and market conditions.

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This episode serves as a comprehensive guide for investors navigating the complexities of the current market, offering expert opinions, actionable insights, and strategic recommendations to bolster investment decisions.

Transcript

[Jim Cramer]

Meet Venu on the NYSE American Symbol Venu Disrupting a multi billion dollar live music industry. Venu owns and operates upscale music venues.

[Unknown Announcer]

Outdoor amphitheaters with seven revenue sources $166.

[Jim Cramer]

Million in assets Luxury suite sales of $77 million in 2024 $200 million expected in 2025 56% year over year Growth venue on the NYSE American Venu when you're with AMEX Business Platinum, you have the card that works as hard as you do, with a flexible spending limit that adapts with your business. That's the powerful backing of American Express. Not all purchases will be approved. Terms apply. Learn [e-mail] AmExBusiness 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. Man, money starts. Hey, I'm Kramer. Welcome to Bad Money. Welcome to Cramerica doing friends. I'm just trying to save a little money. My job is to put in context, but also explain and entertain. So call me at 1-873CBC. Tweet me Jim Cramer. Look, this Clubber Lang thing, it ain't working. Don't know Clubber line. Go watch Rocky 3. Best of the Rockies when Clubber Lang played with panache. But Mr. T is asked his prediction for the big fight against Rocky. He infamously says prediction Pain. Ladies and gentlemen, President Trump has put himself in the awkward position of predicting pain. And he's delivering to owners of stocks in a way that doesn't have to happen. We don't need to have days like today where The Dow drops 428 points, S&P plunges 1.78% and the Nasdaq plummets 2.61%, putting that index down 10% from its 52 week high. Now it's getting worrisome. First, let me say I'm not going to quibble with the President's ultimate goals. He ran on cracking down on illegal immigration and fentanyl traffickers. He ran on closing our trade deficits. Now he's in office. He gets to set the agenda. He's doing exactly what he said he would do, what people voted for. But man, I think there are much better ways to go about doing what he's doing. He can implement his agenda without destroying investor confidence and causing the stock market to roll over. So I'd rather offer my plan now that rather than wait until all the averages are down 10% like the Nasdaq at which point it'll already be too late. Will any of my ideas be Cojan actually adopted? I don't know. I've only advised one president. He loved my idea over Diet Coke, but nothing ever happened. As a rule, people in the White House only care about what I have to say when things get real, real bad. Like when Covid almost shut down the entire economy in 2020. But that doesn't matter in Rocky III. Mr. T aka Club Lang ultimately ended up flat on the canvas. His prediction didn't come true yet. The pain's already coming through here for anyone who owns stock. Today was horrendous and again, unnecessary. We do not need to end up on the canvas every day like this. First part we have zero clarity and maximum uncertainty. Business is going to slow down hiring. The USA will get crushed if we don't get some clarity here tomorrow. I think we have a weak NonFarm payroll report. First of many soft numbers. And we don't get rid unless we get rid of this surprise factor stuff. Remember, most businesses hate the tariffs, but that really terrifies them is what they have that they have no idea what's coming next. Second, the President is threatening to roll up more tariffs. The staged tariff schedule is creating a huge amount of uncertainty. If the President already knows what countries he's going to hit and what products will be made more expensive, perhaps German, Japanese, Korean cars, there will be more pain. But it can be planned for. Tell us now. This is a mess. The President should go on Truth Social, though, and do this. Show all the tariffs that these target countries have against us. They do not have clean hands. We need our citizens to know what our trading partners are really up to. They have systematically discriminated against us. They protect and subsidize their own industries, but we just have to sit there and take it. So show it to us. Tell us. Don't make us try to figure out who's next. Explain why we're simply going tit for tat because people don't understand why this is necessary. Third, the President has sowed enough fear that almost every company that reports during this period is giving a cautious forecast. And it's totally out of keeping with how well they're doing. Nobody wants to come out and say, hey, it's too crazy out there. The President sees the problem. Trump has said there will be pain. So now you think, why should you stick your neck out if you run, say, a major retailer like Macy's and predict you could have a great spring? So even though Macy's did have a terrific winter. They got it so negatively people sold the stock. Negativity is pervasive throughout this entire economy and it comes from the top. Again, this is unnecessary. Trump can accomplish his agenda without doing this much damage. Remember, investing is a good thing for our country. Our stock market is now falling well behind Spain, Italy, France, Germany. More on that later. These foreign markets seem like more certain and welcoming places to put money in. No mandated negativity, no sense of everyday lower prices for stocks, the Wal Mart style of governing. They're taking our investing dollars for certain. And I can't blame anyone for moving their money. Fourth, if we want the consumer who has enough money to keep spending, we need to maintain some degree of wealth effect. It's not a subsidy, it's capitalism. I think the consumer is baffled by the President's tariff policy. People are confused about why, for example, the President's treating Canada as a scoffal and fentanyl when it's obviously a Mexican problem. If Chinese steel is coming through Canada and punish them include Mexico. But Mexico and Canada present very different problems and that's insane. They're being treated the same. People know that's not right. Fifth, nobody wants to be a sucker. The President knows that. We don't want to feel like doofuses for putting money in the stock market. Savings are good thing. We want people to save, but right now it's not worth it. The real winners at this red hot minute are all short sellers. No one will want to come public in this kind of environment. IPOs no normally want to merge. Everything's frozen because everyone's too scared. Suboptimal six and final. When we get the employment number tomorrow and it shows a lot of layoffs, we do not fear a pressure of job losses stemming from the federal layoffs. We get that part of the President that's his plan. You don't have chainsaw musk in there for nothing. Although it might be for nothing if we get that more Supreme Court rulings rolling back these firings. But confidence gets sapped on days like today. Anyone who hires right now feels like a dope. If their stock keeps going down, there's not enough confidence to hire. That's in large part because we don't know what's going to happen next other than it could be real bad. Look, if the market's going to going to go down, so be it. If a company push a series of bad numbers, ones that are well below forecast, it should get the clubberlying treatment. If the vast majority of Important companies, large vital companies perform poorly. Then the stocks should good now down. The market should go down. However, that's not the case. Instead, companies reporting terrific sales and earnings, but then they've given all these downbeat forecasts and pain because why? Well, they, they're confused. They're doing it because they think it's only going to get worse for it gets better. Because that's what the president's telling us. That's what he's telling us he's given. Why not give us an upbeat forecast? Consumer confidence is so negative, you can't, you can crush. Because what's really happening is your price earnings multiples are shrinking because we sense a mandate for lower prices. So why not just sell? And the mandate, it's not coming from Wall street, come from the White House. I say let poorly performing companies see their stocks go just fobbly down. Let the prediction for them be pain. But the good ones, here's the bottom line. I'm not saying there should only be pleasure. That's wrong. I'm saying that the shareholders of great companies shouldn't have to play the fool. And people need to know it's still worth investing. There's no reason it has to be. You have to be stupid to buy stocks. But you sure feel like a dope if you bought today, don't you? You feel like a dope if you bought any day since the inauguration. Wall street hates uncertainty. And until we get some clarity for this administration, it's going to be tough to advise people to buy anything, even the best companies, because pessimism, pessimism is the only path investors seem to know. Robert, New Jersey. Robert, yes.

[Ken Langone]

How are you? Jim, first time caller.

[Jim Cramer]

All right, Robert, thank you.

[Ken Langone]

Love the show. My question is US Steel, with everything that's going on, what do you think about investing in US Steel now if.

[Jim Cramer]

You'Re going to own a steel company after on the best. We're best of best people in this. We are best of breed people in this. And that is Nucor at 131. I think it's a great buy. That's the one I want you to buy and I will always want you to buy. John in North Carolina. John, good afternoon. How are you? I am good. How about you, sir? Just fine. Got a question. All right. I've taken your advice. A little bit of cash aside to play with in case something comes up. And a couple of weeks ago I bought some Eli Lilly and it's taken a pretty good jump. Do I cash it out or do I let it ride, you know. So Lilly, Lilly's got the solution that may be good for everything from Alzheimer's to heart disease to kidney failure to liver problems and right now weight and diabetes and that GOP dash one. And Louise got the big lead. David Ricks is a visionary. We stay long that stock, right? Wall street hates unknowns. And until we get some certainty from the administration, even if ultimately they're doing the right thing, we ain't going anywhere here. And my prediction will be made money tonight. It's a volatile market tonight. I'm sitting down with one of the top investing minds, top buyers, Ken Langone. You got to listen to him. That cracker barrel soaring after earnings up a whopping 7 1/2% after its report. Could the company's turnaround continue to look appetizing this market? I'm talking to the CEO and the parent company by Gap Banana Republican Old Navy just reported after the bell and it looks spectacular. And we got the CEO exclusively. So stay with Kramer.

[Unknown Announcer]

Don't miss a second of Mad Money. Follow imkremer 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. Missed something? Head to madmoney.cnbc.com.

[Jim Cramer]

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[Ken Langone]

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[Jim Cramer]

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[Ken Langone]

You.

[Jim Cramer]

In a tricky moment for the market, it's worth turning to a seasoned investor who see it all. Someone like Ken Langone, the founder, chairman and CEO of Associates as well as being co founder of Home Depot. Now if you're from New York, you know him as the chief beneficiary of NYU's Langone hospital system. Thank you Ken. I was there today. Now he's a true titan of industry. I know him as the most loving, wise and charitable person I have ever met. And I've been around for a long time too. So let's get some perspective on this choppy start to 202025 with the legendary came and go Ken, welcome back to Man Money, Jimmy.

[Ken Langone]

Thanks for having me. I'm honored to be asked and I look forward to spending some time with you.

[Jim Cramer]

Well, I have to tell you, I need your help, Ken. I worry. I worry that things have gotten a little rancorous. I worry that things might be going off the rails or maybe I just need to be a little more open minded and adjust. But maybe you can help me and help our viewers.

[Ken Langone]

Well, Jimmy, I have a very strong fundamental belief that America is the greatest place on earth and that from time to time we tend to mess with it too much. But overall, Jimmy, we're going to be fine. We've got a wonderful country, We've got resources. I must tell you, I'm mighty impressed with the president's first 50 days in office. I think he's tackled some pretty challenging situations. His style is different than mine would be. But guess what? His style got him elected. I mean, the thing I marvel at about this man, the energy level he's got and what he went through for the past four years. I don't know who could have done it. I've been known to have a high level of energy. I don't think I Could have lasted a month. And I think, Jimmy, the thing that I think he should get more credit for, he's big hearted. That little boy the other night, what a wonderful gesture. What a wonderful thing to do. The families. I can go on and on and on. However. However, our politics in America today, in my opinion, are much, much too centered. Without regard to the other side's argument. There's too much gotcha mentality. And because I am an enrolled Republican and a loyal Republican and an enthusiastic Republican, I must tell you, I found the behavior of the Democratic Party at the presidential State of the Union speech. I found it tragic.

[Jim Cramer]

Wow.

[Ken Langone]

And I think it doesn't represent the best of America. And I'm sure most of those people who were there that night are nothing like they projected. But to the rest of the world, when they look at and see us, this is America. This is a leader of the. This is the country that's a leader of the world. So we didn't do ourselves any good. So, you know, I don't know how we end that.

[Jim Cramer]

But. So you're.

[Ken Langone]

But I do believe.

[Jim Cramer]

Go ahead. You sound pretty sanguine. Now. We have a lot of investors watching who think that. Wait a second, he says there's going to be pain. We have to do the tariff thing. Why can't it be a little more like President Reagan, which, you know, I thought President Reagan had unbelievable attitude toward economics. I don't see that. But maybe you can't do that, be like President Reagan these days.

[Ken Langone]

I love Reagan. I love.

[Jim Cramer]

No, but I'm saying Reagan did not like tariffs, Ken. He did not like tariffs.

[Ken Langone]

Jimmy, let me say this to you about the tariffs.

[Jim Cramer]

Okay.

[Ken Langone]

America, God bless our heart, right after World War II, we started something called a Marshall Plan and we purposely gave Japan and Germany, who were on their butts, the edge to get them on their feet. Why is it today? And by the way, the irony of it is the Germans sell a lot more cars in America than America sells in Germany. Our cars, relative to their cars are less fuel efficient. They're bigger. They don't lend themselves to any part of Europe. You know how narrow some of the streets can be. You notice the cars that are all on the smaller side, but here we are. I think tariffs that we charge on German cars into America are 2.5% and the tariff they charge on our cars is 10%. Now, I tell you why I think it's foolish. The Germans sell so many more cars in America than the Americans sell in Germany. If I was Germany, I'd Say, wait a minute, if I make the playing field level in terms of the tariff, I still have this tremendous economic edge, right? Every car I've got right now downstairs in my garage here in Florida, every car with the exception of this antique Cadillac I have, are foreign made. Every one of them.

[Jim Cramer]

Well, I mean, they do. It is not fair. Both Japan and Germany rip us off. And I wish that, I hope when the President goes after them, I wouldn't.

[Ken Langone]

Go far to say rip us off. I say we've allowed that to happen. Right?

[Jim Cramer]

That's ours. That's ours.

[Ken Langone]

Over time, Jimmy, over time this thing will tend to level out and normalize. Right now I'll give you an example of what Trump's negotiating skills are. We should go into Gaza and take over Gaza. That got the whole Middle east riled up. So guess what happened? They're now throwing chips on the table and said, we'll do this. He's out of the picture now because you know what? He got the game started. And now he's saying to them, well, if you don't like what I suggest, what are you going to do? And now they're doing, they're talking about doing something. Whether they do it or not, I don't know.

[Jim Cramer]

Well, let me go full cuz, Let me go full circle. You can, because, you know, it sounds like to me, let's say there's short term pain in the stock market. It sounds like to me that you would say just stick with it, that things are, things are going to be fine and things could actually be better than fine, Jimmy.

[Ken Langone]

Brokers could not make a living if they had my account. Why I own my Eli Lilly 47 years. I own my Home Depot 48 years. I own my JP Morgan stock, effectively 17 years. I own my Parker Hannifan 15 years. The magic for me is if you don't have stocks on margin and you've got solid companies with great managements with good balance sheets. You're right. The storm may be stormy. I don't like to see JP Morgan at 280amonth, two weeks ago, and now down to 245. I don't like it. But on the other hand, how about JP Morgan at 42 when I got in and where it is today, better than that is Eli Lilly.

[Jim Cramer]

You told us it would double. You told us it would double. It's more than doubled. You told us it's going to be a trillion dollar stock. That's unbelievable.

[Ken Langone]

And guess what, Jimmy, I think it's going to double again. What they've got what? They have got that drug Mountiorno and Leftbound, Jimmy, they're miracle drugs. They're looking at opportunities away from obesity, away from diabetes and the pipeline they've got of other drugs, away from these drugs. But you know, Jimmy, you probably know this, and I'm not sure it's right, but I bet it is. If you own a stock and you're out of that stock eight certain days in a year, missing those eight days, you've lost 90% of the play in the stock that year. Now, frankly, I'm not smart enough to know which eight days there are, so I stay for the whole ride.

[Jim Cramer]

That's Peter Lynch. Peter lynch said it's 10 days. He said it's 10 days. You trade in and out. If you trade in and out, how wrong is that, Ken? We have to keep people in. Our job is to say, home Depot. Ted Decker, he's doing as good as Frank Blake. You gotta be in the stock. It's fabulous, right? Yes.

[Ken Langone]

And more importantly, the economics of Home Depot. 70% of Home Depot's business is MRO, maintenance, repair and operations. The other 30% is a new dormer, a new room or a new home. The thing I love about Home Depot is you become more sensitive to things around your home in bad times. Because if you got a leaky window and you pay more for energy because the hot air is going out the window. What I'm saying, Jimmy, is I'm not smart enough to know timing. I know people. There are people. I'll give you, for instance, Stan Druckenmiller has a nose for timing like nothing I've ever seen in my life. And I've invested with Stan now for more than 40 years. But Stan's a good example. I met Stan when he was in his late 20s. And I knew, I knew then this kid had it right. And I've invested with him. He's now 71. I don't know 71. My God. The record he's accomplished is unbelievable. Stan has a knack for avoiding loss. He's very, very averse to loss. And when you think about the math, Jimmy, I buy a stock at 100, I sell it at 50 to get back to my hundred, I got to find a stock that doubles. There aren't many stocks that double. So if you can take the risk of loss away or minimize it, you got a much better chance to do what Stance? One of a kind.

[Jim Cramer]

But. But he would still say that great American companies can be owned through this period, correct?

[Ken Langone]

Yeah, but. But But I give Stan a lot of credit. Stan is.

[Jim Cramer]

Well, he's never had a loss here. He's never had a loss here. He's amazing.

[Ken Langone]

No, no. I've invested with him for over 40 years. I can tell you. He's never lost money in one year.

[Jim Cramer]

It's amazing.

[Ken Langone]

He didn't lose it. It's unbelievable.

[Jim Cramer]

But I want to bring it back to you, Ken. I want to bring back to you. You sound as optimistic as always. I wanted you on the show for many reasons. Not just because I love you, you know that, but because we need, you know, we need your perspective. And the perspective is be calm. It's. It's good. Is that a fair analysis?

[Ken Langone]

Yeah. It's not only that, Jimmy. We live in the greatest country on Earth. We have enormous needs in America that generates significant economic activity. My opening, my sole focus. After I decide that the. The industry in which the company's participating has a positive future, I spend all my time getting to know the management example. Kmart was a behemoth when Walmart had four stores in Bentonville, Arkansas. Kmart is gone. Walmart is the biggest corporation by sales in the world today. Sears, Roebuck. Hell, that was a big thing for me to go to Sears Roebuck on a Saturday afternoon. Fizz Roebuck was king of the mountain again. Sam, what was the difference? The people?

[Jim Cramer]

Well, the lesson there is that we want to be with great companies run by great people who have a vision.

[Ken Langone]

Absolutely.

[Jim Cramer]

And now I'm gonna have to leave you, Ken. I hope I see you in person soon. I miss you, Jimmy.

[Ken Langone]

I'd love to see you. And by the way, Jimmy, tell your wife I'm grateful for all the work she's doing for Bucknell. And I'm especially grateful to you, Jimmy, for showing up every once in a while and talking to the kids. It means a lot to them, and.

[Jim Cramer]

It means a lot to me.

[Ken Langone]

Have a nice day, everybody. Don't sell America short, Jimmy, please.

[Jim Cramer]

Thank you for coming on, Ken. It is so meaningful to everybody, including my wife. I'm going to call right now. Thank you, Ken. That's Ken Lingone, chairman of Infinite Associates. And he's so much more, and he's just an amazing person. Mad money's back in.

[Ken Langone]

Coming up, an old country chain going.

[Unknown Announcer]

After a new look can Cracker Barrel serve hungry investors.

[Ken Langone]

Stick with Kramer.

[Unknown Announcer]

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[Jim Cramer]

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[Jim Cramer]

Look at the stock of Cracker Barrel. Run even on a tough day. I've been recommending this stock as a turnaround place since last summer. And after a volatile stretch, the company just reported a tremendous quarter. Clean, top and bottom line beat with management raising their full year forecast, not cutting like so many others. Hence why the stock jumped 7.57 today. That's a huge gain and a bad day. That said, the stock's still down over 33% from its January highs. So could this be the buying opportunity now if the turnaround has arrived? Let's check in with Julie Messina. She's the president and CEO of Cracker Barrel Old Country Stores to find out. Julie Messina, welcome back to the band, buddy.

[Julie Messina]

Thanks for having me, Jim. It's great to be here.

[Jim Cramer]

Well, it's happening, Julie. The turnaround's happening as you predicted. And I want to give you the floor to ask you how you got these unbelievable numbers.

[Julie Messina]

Oh, gosh, you're so kind. But honestly, it's all the great hard work by the team. They are working so hard every day to execute in the moment, take care of the guests who are in our store as well as execute the turnaround. So Q2 is a really important quarter for us. It's seasonally high volumes and they just did a great job. So huge, huge thank you to them. And we're so pleased. Two quarters behind us into the, into this year and we're able to raise guidance. So it feels good.

[Jim Cramer]

It is amazing. Now, you are a very rigorous person. You have this transformation framework in your deck and I just want to check some of these off because I think they're really relevant. You're refining the brand and enhancing the menu without alienating the people who've always loved Cracker Barrel. But you're bringing new people in. How we've been able to make that change.

[Julie Messina]

Yeah, you know, it's so important. You and I have talked about this. I think when we first launched the transformation agenda, it's so important to us at Cracker Barrel that we continue to love on the guests who love us. And all we're trying to do is really open that aperture a little bit wider and invite even more people into this wonderful brand. So it's really taking care of the people who already love us and inviting.

[Jim Cramer]

A few more people in at the same time. You have kept that price point. It's very reasonable. And what I love, by the way, you sell a lot of eggs. You have a lot of eggs in your dishes, but you didn't raise price because you figured out how to handle the supply chain. How did you do that when everyone else is screwed up?

[Julie Messina]

Well, a huge shout out to our supply chain and our vendor partners because they've done a great job. We're contracted through the end of our fiscal year and even into next. And so we said, gosh, let's, let's take care of our guests during this time as well. Let's let them know that we've got them. We know value is so important to our guests. It's a really important tenet of what we do here at Cracker Barrel. And to be able to give double pegs on eggs to our loyalty members for two weeks was really just something fun to let our guests know that we've got that.

[Jim Cramer]

Let's talk about that loyalty program. And there are situations where people are saving so much more than I've heard on a typical loyalty problem program. You've been giving away some stuff. I mean, big.

[Julie Messina]

Yeah. I mean, look, we are about value here at Cracker Barrel. We want to make sure that people know that we've got them. You and I have talked about everyday dinner deals. We've talked about Sunrise Pancake. But loyalty is an amazing way that we deliver value to our guests. We let them earn on both sides of the business. They can earn pegs on both retail and restaurant, and they can redeem them on either side. And we're really having fun learning what motivates them, really digging in and seeing if it's retail items that motivate them more in restaurant or vice versa. Is it discounts? Is it, you know, more pegs? And so we're just really continuing to test and learn our way through what's motivating to these loyal guests. And we love them for it. And it's just been a really fun way to reward them and grow the business.

[Jim Cramer]

Okay. With this forecast, I'm going to bounce something off. You can tell me if it doesn't work, but I'm thinking you will go very big. At the idea that people worried they have confidence issues. Things are a little crazy out there. Somehow. Cracker Barrel may be the refuge from the craziness.

[Julie Messina]

I love it. Sure, I'll take it. But really, we started off with a rough February. Like everybody. The weather was an not kind. I mean, Jim, we had stores closed in Louisiana where it never snows. So it, you know, we experienced what everybody else did. But the last two weeks, you know, we're five weeks into this quarter. For us, the last two weeks have seen really positive improvement and we're excited about that. So the improvement that we're seeing coupled with our strong plans, you know, we are, we've said this is an investment year. We've got a lot of things coming together. We have a great Q4. So we believe even with what's happening out there right now, that we're able to really raise our guidance and deliver a great year for our shareholders.

[Jim Cramer]

I don't mean to be too narrow, but you talked about how people might like pot roast when I saw you last time. It worked. How did you know that they love pot roast?

[Julie Messina]

You know, that's really what we're doing with our menu innovation pipeline. We talked about finding things that are uniquely Cracker Barrel and that are comforting and delicious. And our guests really love abundant, delicious home cooked food at a great price point. And that's what we're continuing to do. You've got to check out our new menu items that we just launched a couple of weeks ago. We've got a Louisiana shrimp skillet. We've got a shrimp and grits skillet. We've got pancake innovation. Just things that people love that are executed so well by our great team and served with our wonderful country hospitality. So we've got lots more coming. I'm so excited about the innovation pipeline. The team continues to do a great job there.

[Jim Cramer]

Let's say what is you had some places that you thought that you really go drilling down, trying to do new stuff. How is that going? Some of the new, you know, they're kind of like things that you never seen anymore where you're actually experimenting with particular stores. Is it working?

[Julie Messina]

Yeah, I mean, not only is it working, but we're learning. Right. So not everything is going to be a home run, but that's okay because what I keep telling the team is we've got a test. We've got to learn. We've got to keep improving and keep raising the bar. And that's really what this test and learn is all about. So thinking about Our remodels, trying to figure out what really makes people excited to come into a Cracker Barrel. Is it the lighting? Is it the seating? Is it the food? Is it the pain? And so we keep really just testing and learning our way into all of these things. We've got a new format that we're playing with right now that we're excited to launch in a couple of weeks. So lots of, lots of fun stuff.

[Jim Cramer]

Well, you are exciting to listen to and I'm so proud of you. You came in and I was worried because the brand is storied but was a little run down and you're fixing it one day at a time. I got to tell you, Julie, you're terrific. That's Julie Messina, President CEO of Cracker Barrel. Congratulations.

[Julie Messina]

It's really the team. Jim, thanks so much for having us on. We're working hard to take care of our death and take care of each other.

[Jim Cramer]

It's the team. But you're the captain and we salute the captain. Thank you so much. Everybody's back in. Can you leave this incredible stunning quarter from the Gap. When the parent company of Gap Banana Republican Old Navy reported after the close, it delivered a gigantic earnings beat, higher than expected. Revenue huge. Same store sales growth much better than what Wall street was looking for. Plus an impressive full year forecast. No wonder the stock soared. After hours trading can keep climbing. Well, it was a ridiculous fall to begin with. But let's dig deeper with Richard Dixon. He's the turnaround artist, President CEO of the Gap. To learn more about the quarter and what's next. Mr. Dixon, welcome back to Mad Money.

[Unknown Announcer]

Jim, good to see you. Thank you for having me.

[Jim Cramer]

What can I say? You came on the show, you predicted you could do certain things. Not only are you way ahead in terms of schedule, but the fact is these numbers are just outstanding. How were you able to deliver comp store sales, 7% gap. We were looking for nothing like that Old Navy 3 were looking half of that banana republic as you predict. The banana republic has turned already. How did you do this?

[Unknown Announcer]

Well, first of all, it is not a one man show. As you know, we have an extraordinary team that perseveres every day to drive results. The quarter was, as you're acknowledging, it was an exceptional quarter. I mean we, we delivered another quarter that exceeded financial expectations. Sales comp up 3% for the quarter. This is the fourth consecutive quarter of positive comps. We also gained market share for the eighth consecutive quarter. And this is really indicating that our brands are resonating. We're Gaining traction. The progress is real. And Jim, as you know, this, this year has been a difficult year. But all four brands, every one of our brands gaining market share, I mean, that's demonstrating strength in the industry. And this is against a backdrop of a declining apparel industry. So even more encouragement that our teams are executing with excellence and we are on our way to continuous improvement at.

[Jim Cramer]

The same time because we've got great shareholders out there, amazing dividend and a balance sheet that you started with that is now in rock solid, probably the best in the industry. I mean, I don't know how that happened, but you must have very few problems with say even, even tariffs.

[Unknown Announcer]

Look, it's, it's not a magic trip trick. Obviously we've been working really hard. $2.6 billion in cash. We've got obviously free cash flow now at $1 billion for the year. I mean, it was really a successful year. We're well positioned for the future. And look, as we look at tariffs, it is, you know, something that we're monitoring developments around very closely, as we all are. It is important to note, you know, we source less than 10% of our product from China. We have less than 1% of our product from Canada and Mexico. And that's by the way, combined. And as we've shared our guidance today, it contemplates what we know today regarding tariffs. Over the last several years, we've been strengthening our supply chain, will continue to diversify and ultimately just really stay focused on creating the right product at the right time, at the right place, and no matter what, minimize the impact to the consumer. So we're going to be working hard to continue the momentum that we have. Tariffs, cost inputs, these are all the day to day of doing business. And it's our job to just deliver the best product at the best time, at the best quality, at the best price.

[Jim Cramer]

I want to tell you that people before you, there was never a sense that the gap had immediacy. All we're talking about in our office is White Lotus. And then suddenly we see you're tied in with White Lotus and apparently it's doing great.

[Unknown Announcer]

Yeah, the White Lotus collaboration with Banana Republic is phenomenal. We just dropped a 20ft, 24 piece collection in partnership with White Lotus, which is such a good collaboration for Banana Republic. I mean, it really speaks to the modern explorer position. It's great product. And as you know, Jim, I mean, you've been, you've been in our stores, we've been leaning into, leaning into more precise assortments. We've been Focusing on fit, we've been rebuilding trust and how exciting was it to see that all start to take hold? With fourth quarter comps in banana up 4% and market share gains, we are really excited with the future potential of that brand.

[Jim Cramer]

A lot of people talk about their team and it kind of eyes glaze over. It can here because you talk about getting your team, they're getting out of their comfort zone. What does that mean for the brand and for your numbers?

[Unknown Announcer]

Well, first of all, you know I've talked about that a lot with our team and we are getting comfortable being uncomfortable. You know, today what's certain is uncertainty. And so a resilient organization is driven by the motivation to solve problems on a daily basis, to focus on the consumer relentlessly to drive what we do better. And again, the results that we have delivered represent that effort. It was an exceptional year. All four brands gaining market share. It's really demonstrating strength in the industry and it's showing that this is a winning team. And we've just started. It's an exciting moment and we are determined to continuously improve through innovation, better product, better experiences and drive momentum in the years.

[Jim Cramer]

I know you took me through the turning gap, the astounding turn you through Banana Republic. When I go in the stores they look magnificent. I heard you mention Athleta so I got to bring it up. When is that one really going to be an engine gym?

[Unknown Announcer]

First of all, bring it up. I mean Athletic is the number three brand in the women's active space. It's the number three ranking brand. It's an important brand in the industry. It's an important brand in our portfolio. And when you look at the year, Athletic delivered a flat comp for the year. So there have been improvements across key metrics and also we gained market share. Now this is against a previous year of double digit decline. So there is progress. We've made the brand stronger, we're launching new activations, we're reentering the cultural conversation and it is reinforcing that. We've got great long term opportunities with this brand. We just need to continue to do the work to reset the brand and continue to drive our ambitions which should be high. So we've got more work to do. Stay tuned to Athleta. It's an important brand in the industry and in our portfolio.

[Jim Cramer]

I will. Because there's a giant in that industry that is, I think has the price is a little too high. One last question. Everyone else is telling me worry about consumer confidence. Things are very shaky. I read your Reports and I say, you know what, the consumer is pretty confident. Well maybe you offer something that the consumer can't get us.

[Unknown Announcer]

Well, first of all, you know we are always studying the consumer. We are a human centered, consumer centric business. And we saw growth across all income cohorts in Q4. Now again market share gains were led by lower income cohorts with strength in old NASA Navy and we had outside outside share gains with strength in both top and middle cohorts, particularly with Gap. But what's important as we back up is our portfolio of brands really appeals to a wide range of consumers which is a distinct advantage. And so look, there are always winners and they're always losers. Any particular industry against the backdrop of a declining apparel industry, we gain share. The consumer is voting for our brands. We are fundamentally stronger. We're resonating with consumers and we just have to stay focused on executing with excellence, with style and quality.

[Jim Cramer]

I have no doubt, I have no doubt that you will do just that. That's Richard Dixon, presidency of Gap. Thank you so much sir. Great to see you. Thank you so much. It is time for the white course. Head of the play this out and then the lightning round is over. Are you ready Ski Dag? Time for the light round. Crazy. Let's go to Terry and Barta. Terry.

[Ken Langone]

Hi Jim. I'm enjoying being a fairly new member. Last, last Christmas Eve here I bought.

[Jim Cramer]

Some stock, not very good Christmas present. It's down over 28% right now and I'm wondering if I should just take.

[Ken Langone]

The loss and dump it or buy.

[Jim Cramer]

More or hold it forever. So it's Tetra Tech, very good company, very good companies come down but it's a really good company, does consulting, management. I've done it. I remember it's pollution control. I think you've got a winner. Please do not sell that. I need to speak to Rick in Florida. Rick, good evening Mr. Kramer, first time caller and now a new dedicated viewer over the last couple of months. Thank you for taking my call soon. Which one? I said I was hoping to join the club soon. I hope so. Join ahead of next week's meeting. You gotta join. We got some good stuff to say. How can I help? Well, I was interested in this tech stock and I thought this might be.

[Ken Langone]

A good time to call because this.

[Jim Cramer]

Was a company that had a major contract through Nvidia a couple months ago.

[Ken Langone]

Their stock price rose up real quick.

[Jim Cramer]

And then it kind of tapered off.

[Ken Langone]

And it kept going down south from there and everybody kept talking about how.

[Jim Cramer]

Companies that were getting involved with Nvidia.

[Ken Langone]

You know, in the last couple months.

[Jim Cramer]

Right. We'll feel the ripple effect of everything going on. So I'm wondering if this is happening with this company also. It's. It's tjk. I know it. Because the Nvidia connection, I have to tell you, they have flat revenues for the last three years. You'd be buying it. Sounds a little like sound now. I'm gonna take a pass on that one. Thank you for the kind words. Let's go to Haiko in North Carolina. Haiko.

[Ken Langone]

Hey, Jim, how you doing?

[Jim Cramer]

Thank you for taking my call. Of course.

[Ken Langone]

People like you share your knowledge.

[Jim Cramer]

Thank you. Hey, thank you.

[Ken Langone]

When it comes to come. When it comes to companies after the ipo.

[Jim Cramer]

All right. Long.

[Ken Langone]

Should you hold them? And I'm asking you specifically about DGNs.

[Jim Cramer]

Okay. I need to see profits. I need to see profits. I'm not seeing profits. Therefore I'm not going there. And that, ladies and gentlemen, conclusion of the Lightning Round.

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The Lightning Round is sponsored by Charles Schwab.

[Jim Cramer]

Let's say you believe that the stock market is a good proxy for the state of a country. It's not perfect, but it certainly reflects how investors feel about America and its future trajectory. But judging by the averages, maybe we should be embarrassed, even mortified because we're doing so much worse than similar countries, including countries that we'd written off years ago. Consider these year to date returns in their own Currencies. Germany up 17. Spain up 14. Italy up 13.7. France up 11. South Korea up 7. How is this possible at a time when we, the engine of the world, are down for the year? Down? Typically we're down more than 10% from the 52 week high for the NASDAQ. How could there be such a despair? Simple. Right now they're doing better than we are. And given how we have so many great companies with such amazing prospects, it's worth delving into why there's such a disparity. First, these European countries have a central bank that keeps cutting interest rates to stoke demand. Today, the European Central bank delivered a quarter point cut, taking its equivalent of the fed funds rate down to 2.5%. Six cuts since June of last year. The EU is also committed to spending almost 8 billion euros is for defense, ostensibly to protect Ukraine, but also to protect our own countries if Ukraine falls. There's a new sense of unease in Europe about NATO if the Trump administration starts to pull out of the organization. I don't think the worries misplaced. Plus massive defense Spending is good economic stimulus. Second, individual countries are taking action to get their economies moving in the biggest, most important market. The German DAX40 is getting a major boost from the actions of Germany's new government, which is loosening the so called debt break in order to bulk up on defense as our country pulls back from defending Ukraine. The Germans have historically been very reluctant to run big budget deficits. They don't want to provoke inflation because they did not end well the last time that happened. But if your government won't borrow money, just can't do much. Choose the economy. Now though, Germany's willing to get its economy moving again by any means necessary. This move jarred their bond market, saying the Yield in the 30 year bond up 25 basis points from slightly over 3%. Biggest jump since 1998. They'll do whatever it takes. They've got no choice. Ukraine's very existence is now threatened by the US withdrawal. Germany's committed to Ukrainian independence. This is an existential issue for them. Also, the auto market has been suffering a victim of the slowdown in China. So the German government needs to spend big to turn things around. They got to lower their tariffs on our cars. On top of that, Germany needs to watch its back. Last year it exported $160 billion worth of goods, thus only imported 90 billion worth of our stuff. Presumably President Trump doesn't like that. They need to make sure their economy is healthy in the face of potential trade war. They need to lower their tariffs on our cars at just as Ken Lang told you earlier in the show. But it's not just Germany. While we've been furiously revising our economic forecast down, some believe we'll have negative GDP growth. Spain had a surprising 3.2% growth and just they've been raising, raising the estimates of how fast their economy is growing based on tourism manufacturing. By the the way, the rest of Europe's being boosted by the huge uptick in defense spending. Germany's basically the engine of Europe. Said their strength spills over to everyone else. Meanwhile, Hong Kong, a proxy for China's flying because of artificial intelligence strength as well as efforts to boost consumer spending, these efforts finally seem to be taking off. How about here? Now we all know what's keeping our stock market down. It's being sacrificed on the order of uncertainty and confusion about punishing our trading partners for allowing illegal immigration and fentanyl smuggling. In fairness, and also of course, tariffs. Trump ran on border security, not higher stock prices. So he's doing what he said he'd do. But everything seems so jumbled and hard to fathom. Many think that unless and until The Dow drops 10 to 15%, we're set up for stock market pain, and I've been trying to help you through the travails of that. But at what point does the disparity between our stock market and our ally stock market become too great? I think we'd be in better shape if Trump rolled out the tariffs more gradually with a clear trajectory of where we're headed, rather than these endless intermittent volleys of Katusha rockets. Until things start getting a little more measured, we'll remain in the Wal Mart White House, where we will get every day lower prices for the Dow Jones, the S and P, and most savagely, the NASDAQ 100. To me, it's a shame it just doesn't have to be this way. I like to say there's always a bull market somewhere. I promise I'd find it just for you right here on My Money. I'm Jim Cramer. See you tomorrow.

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[Jim Cramer]

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[Jim Cramer]

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[Jim Cramer]

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