Cramer's Mad Money - Yum Hasn't Lost Its Flavor (11/13/13)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday November 13.

CEO Interview: David Novak, Yum Brands (NYSE:YUM)

Yum Brands (YUM) was taking China by storm, but some bad publicity and a health scare in addition to a downturn in China punished YUM. The company reported earnings and revenues that were lower than the street expected, and same store sales dipped. However, CEO David Novak is optimistic about the long-term. "We have not recovered yet, but we are optimistic about a recovery. We are still the number one consumer brand in China. The long-term has never looked better." Taco Bell is doing well in the U.S with a revamped ad campaign: "Taco Bell is a bright, shining star in our portfolio," said Novak. Cramer thinks Yum might see a comeback on the strength of its management.

Twitter (NYSE:TWTR), LinkedIn (NYSE:LNKD), Macy's (NYSE:M), USAirways (LCC), Starbucks (NASDAQ:SBUX), Kraft (KRFT), T-Mobile U.S. (NASDAQ:TMUS), Extended Stay (NYSE:STAY)

"The old days are back," said Cramer, referring to the fact that the Dow rose 71 points even after negative news about Europe and China. There hasn't been much bad news out of Washington lately apart from concerns about Obamacare, but problems with Obamacare are good for companies. Oil prices have been down, and the Twitter (TWTR) hangover has run its course. The latter should be good news for LinkedIn (LNKD) which was unfairly punished after a mainly positive quarter with guidance that was "too downbeat." Macy's (M) exuded a positive feeling about the upcoming holiday season. The settlement in the merger between US Airways (LCC) and American Airways makes the former a "buy." Even though Starbucks (SBUX) had to pay a princely settlement to Kraft (KRFT), SBUX's stock rose; "I think Starbucks is terrific," said Cramer.

Cramer took some calls:

T-Mobile US (TMUS) is issuing a secondary, but Cramer would get into that deal, because the fundamentals are good and it might be a takeover target.

Extended Stay (STAY) is making a comeback and has excellent management.

CEO Interview: Open Table (NASDAQ:OPEN)

Open Table (OPEN) is an anointed stock and has been growing dramatically. Currently, only 15% of restaurant reservations are made online, and OPEN has opportunity to growth. The company has moved aggressively into mobile, with 41% of its reservations made on mobile. OPEN benefits from a fee-based business model. Although the industry was flat year over year, OPEN has grown 28%.


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