Last Wednesday, food service companies Shake Shack and Jack in the Box reported earnings and blew out their numbers. But for some reason Shake Shack stock sizzled after it reported, and Jack in the Box was thrown away. Jim Cramer wants to know—what the heck is going on?

"Welcome to the world of hopes and dreams versus the world of cold hard reality," the "Mad Money" host said.

Shake Shack is the infamous 68-store hamburger chain, created by Danny Meyer, which shocked investors last week when it reported impressive double-digit same-store-sales growth.

And given how quickly it has grown, can you imagine how many more locations it could open, taking this company from a regional presence to a national company?

Then there is Jack in the Box, which has consistently delivered better than expected quarters recently. It announced a 50 percent dividend boost and a $100 million buyback. Cramer was salivating over this stock.

Yet, for some reason investors furiously dumped Jack, partially because money managers were trying to get rid of domestic stocks on account of a strong dollar, and Jack is a total domestic play. Cramer also thinks some of it is because Jack has been so consistently strong, and the market is looking for B or C students that could pull a surprise and become an A student.

But does no one care that Shake Shack's double-digit same-store sales were derived from only 13 locations? A location has to be open for a minimum of two years, and it has expanded so quickly that only 13 of them have been around that long.

Not to mention that when its Madison Square Park flagship store opens, the comps will most likely go down because it will draw customers away from existing stores. Or how about the fact that if you divide the market cap by the store count, the average Shake Shack location is valued at a sky high $38 million? Jack in the Box is only $1.2 million per location.

Cramer also was alarmed by the fact that the stock is so completely overvalued, that a large short position in the stock has been building. Short-sellers were betting that the stock would get crushed when it reported last week. They turned out to be wrong.

Yet, the market still loves Shake Shack and gobbles the stock up!

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"That's because Shake Shack is a cult stock; it's the equivalent of Tesla for burgers. You try one, you love it, so you buy the stock, and you don't sell it because it's overvalued," Cramer said.

Meanwhile, the short sellers have been scrambling to cover their short positions, and that's why the stock continues to rally.

As far as Cramer is concerned, investors should just ride out their positions with Shake Shack and Jack in the Box. The latter remains undervalued and no one cares, and Shake Shack is still an overvalued cult stock and everyone cares—but one day the tides will turn.

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