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Stop Trading!: Choose Chipotle

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Published: Thursday, 27 Sep 2007 | 3:34 PM ET
By: | Web Editor, "Mad Money"

CKE Restaurants CEO Andrew Puzder said on "Street Signs"that costs for his restaurant company have gone up across the board. The weak dollar and droughts in Australia have turned China's gaze toward the U.S. for potatoes. The struggling greenback has made American cheese popular overseas as well. Construction costs are up. So is oil.

Jim Cramer's Stop Trading!
Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett.

No wonder Cramer said Chipotle is the better stock to own.

"I can't get behind a restaurant [CKE] where they themselves have been pointing out disappointment," Cramer said. "This is a momentum game, and Chipotle has momentum. That's where I want to be."

Cramer said he knows Chipotle is expensive, but it's growing while CKE is slowing. He called CMG a cult stock like Starbucks was six to eight years ago.

Questions for Cramer? madmoney@cnbc.com

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

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While CKE Restaurants is slowing, this Mexican eatery is growing.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
  Price   Change %Change
CMG ---
SBUX ---

   
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