Cramer's Morning Take: Texas Roadhouse 5/13/25

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Jim Cramer (1:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

Jeff Marks (1:07)

So we do have some portfolio moves in the portfolio that we made this morning.

Jim Cramer (1:10)

Well, we should talk about that because it's very significant because I don't want to minimize selling something that just went up gigantically.

Jeff Marks (1:16)

Yeah, so why don't we start with that. Texas Roadhouse had a huge move about 10% since reporting late Thursday night. Of course, the reason why it went up so big, re-acceleration and comparable store sales.

A big up 5% in the first five weeks of the second quarter. Better than expectations. So we did see that rebound from that horrible weather that plagued February. Bought back a lot of stock too. Now, they did increase their commodity inflation outlook. I didn't like that. Mostly due to beef prices, somewhat also due to tariffs.

Jim Cramer (1:50)

They went to 4%. I mean, they should have been a little more sensitive that that could go up more. Or they may have to do it again because the herd is not big enough.

Jeff Marks (1:57)

Yeah. So we lowered our price target to 195, and with the stock at 190 now, and through all this, we've had the position in the stock gear today to flip from a loss to a gain. Took some off the table today.

Jim Cramer (2:08)

This a little reminds me of our CrowdStrike decision to sell some at 420, and then it goes down really big, we can buy some. This is a parabolic move. If this comes back to right here, yeah, we're right in there and do it. But we have a very big position in this, and I just think that we want to be responsible.

This is the trim, that kind of trimming that we do, it is not meant for people to say we didn't like it. But Apple got too big and Nvidia got too big. When I see this kind of parabolic move, it is imperative upon us to say, you know what, we have some 185 stock, let's just go trim some of it because we're overbought. Believe me, if we were oversold, I would not have suggested this.

Jeff Marks (2:44)

Fair enough.

Use some of that cash to partially offset the cash is partially offsetting a buy of GE Vernova today. This is a new position. It's been in the bullpen. GE Vernova business split between equipment sales and services business. They sell these huge equipment and then they service it for years to come. Main three segments, power, electrification.

Jim Cramer (3:05)

Not early, I meant not early, but I will say we're small. We hope it comes down. Again, portfolio management, you start small and you hope it comes down. One of the reasons why I really like this is because we know that people will buy Boeing to get the trade deficit down. They will also buy the turbots from GE Brnova to get it down. I also feel a little better about wind lately.

Jeff Marks (3:26)

Yeah, it sounds like there might be some gas turbine equipment as part of this Saudi Arabia deal being announced today impacting NVIDIA. But the main thing here is that the overarching theme is that, and this is from the CEO in the last earnings call, Scott Strazek, the world is entering an era of accelerated electrification driven by manufacturing growth, industrial electrification, EVs, and emerging data center needs. It's creating an unprecedented need for data, investment in reliable base load power, grid infrastructure. The business is basically sold out. 26, 27, 28, they're booking orders, so a lot of pricing power.