Segment 1: McDonald's (MCD) vs. Burger King (BKC)
Cramer is going to spend at least one segment a day this week comparing two household names that are in a good sector right now, and then scoring the companies on his 10 point scale. These two are in a good sector with people trading down from better restaurants to fast food as the economy slows, so he gave them 3 points each. He then compared the future growth prospects of the companies, and gave BKC 3 points to MCD's 1.5. Next, he compared the consistency of their growth, and said that McDonald's wins this and gets 1 point because Burger King has only been public for 2 years. The next area is dividend yield, and McDonald's won this as well, and got another point. The last area to compare is control of input costs, and MCD wins this as well, getting 1.5 points with Burger King getting none. In total, MCD got 8 points, and BKC got 6, even though MCD has a lower P/E ratio than BKC, meaning you should buy MCD.
Cramer took phone calls on the following stocks:
Sonic (SONC): Cramer likes this company, but they are too inconsistent for him right now.
Panera Bread (PNRA): Cramer is bullish because they are growing and offer fast food that is higher quality.
Segment 2: Coach (COH) vs. Tiffany (TIF)
This is his next head to head comparison using his 10 point scale, and he broke the stocks down in the following way:
Sector (5 points): Both stocks got 2.5 points
Future Growth (3 points): COH got 2.5 points, TIF got 1 point
Growth Consistency (1 point): COH got 0.5 points, TIF got 0 points
Dividend (1 point): COH got 0 points, TIF got 0.5 points
Raw Costs (1 point): COH got 1 point, TIF got 0 points
Total: COH got 6.5 points, TIF got 4 points
Coach is trading at 11.7 times earnings, while Tiffany trades at 12.7 times earnings, but COH is the better stock by far. He said that you still might not want to buy COH if you don't think that retail will improve, but you should definitely buy Coach over Tiffany.
Segment 3: Lightning Round!
Weatherford International (WFT): Cramer is bearish on this stock because oil is dropping and refiners aren't doing well either.
JetBlue Airways (JBLU): Cramer will never recommend an airline.
Yahoo! (YHOO): Cramer is bearish on this stock, and said to buy Google (GOOG) instead.
Weyerhauser (WY): Cramer is bullish because he likes the dividend yield and thinks housing will bottom in about 9 months.
Boeing (BA): Cramer said it is not worth buying, but people who own the stock should hold onto it.
PPL (PPL): Cramer said to buy Exelon (EXC) instead.
Visa (V): Cramer is bullish on this stock.
Segment 4: Interview with Texas Governor Rick Perry
Cramer is a fan of the governor because he stood up to the ethanol mandate being pushed on us by the U.S. government because it is pushing up grain costs and hurting their cattle farmers. Perry is a fan of wind, solar, natural gas, and other alternative energies, just not corn based ethanol. They talked about his energy plans for the future of the state.
Segment 5: Mad Money Mail
Walgreen (WAG): Cramer recommended this over CVS last week because he thinks they are going to slow down and implement a more measured growth plan.
CVS Caremark (CVS): Cramer didn't like their last earnings report.
Google (GOOG): Cramer liked the points that the CEO made on the show last week, and is bullish in the long term.
