Jim Cramer's Wall Street Confidential Picks, 7/11/07

by: Miriam Metzinger

Recap of Jim Cramer’s comments on Wall Street Confidential, Wednesday July 11. Click on a stock ticker for more analysis:

Darden Restaurants (NYSE:DRI), Brinker (NYSE:EAT), Yum! Brands (NYSE:YUM), McDonald's (NYSE:MCD), Chipotle Mexican Grill (NYSE:CMG), Buffalo Wild Wings (NASDAQ:BWLD) and Jack in the Box (JBX)

Cramer commented restaurants are a great gauge for discretionary spending, but comp numbers and financial engineering are not enough to make him like a stock. For instance, DRI's comp numbers are good, but it needs new strategies to move up. A company like EAT which has already done its financial engineering and has left its investors sated doesn't have far to go. However, YUM will always "buck the trend of consumer decline" with its international exposure, especially given the weak dollar, and its practice of returning value to shareholders. Cramer dubbed MCD a "classic weak dollar stock." CMG and BWLD have the advantage that they exist "almost nowhere" and have potential growth as far as the eye can see. Cramer predicts Mexican food is the next pizza, which would benefit CMG as well as JBX.

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