GO
Loading...

Cramer's Hot Stock for 2013

Wednesday, 19 Dec 2012 | 6:30 PM ET
Whole Foods CEO on Store Count & Private-Label
Whole Foods co-CEO Walter Robb discusses what's next for the company, saying his team is working on expanding its store count, and expects to have 20 percent private-label brands on their shelves.

After talking with the CEO, Jim Cramer exclaimed, "I think this is going to be a fabulous stock for 2013."

The stock is Whole Foods.

Largely the Mad Money host feels the company's has tremendous growth opportunities in the year ahead.

(Having trouble viewing the video? Click here!)

When Cramer asked Mad Money viewers to submit questions for Whole Foods co-CEO Walter Robb ahead of an interview, the recurring theme was "why isn't there a store closer to me."

People want to shop at Whole Foods.

In response Robb told Cramer that the company is expanding quickly. Currently Whole Foods has between 300 to 400 stores.

"But 1,000 isn't out of the question," added Cramer.

(Read More: As Americans Rush to Fresh Food, Supermarket Chains Follow)

NYSE Traders
Getty Images
NYSE Traders

Robb revealed on Mad Money that, in fact, the big theme for 2013 at Whole Foods will be growth.

"We signed 74 leases in the last 12 months, we opened 7 stores last quarter and we plan to open 11 more this quarter — we are growing — we are accelerating," Robb said.

Cramer likes the story.

The upscale grocery store has become all but synonymous with one of the hottest trends in food merchandising — organic.

And the strategy has paid off. The latest numbers appear encouraging.

In November, when the company last reported earnings, fiscal fourth-quarter earnings excluding items rose to 60 cents per share from 42 cents a share in the year-earlier period.

Revenue increased 23 percent to $2.9 billion from $2.35 billion a year ago.

Although shares have flat-lined recently, Cramer isn't worried.

"They posted strong same store sales and offered a $2 special dividend," he said.

But on top of that, "Whole Foods is a trendsetter, that's why I think the stock could go higher," he said.


(Read More: Scaling the Abyss: 9 'Buys' if Nation Falls Off 'Fiscal Cliff')


Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

  Price   Change %Change
WFM
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.