On Nov. 30, Mattress Firm, the top mattress retailer in the U.S., announced it was buying Sleepy's for $780 million in a transformational deal that would make it the only coast-to-coast mattress chain in the country. The deal would expand Mattress Firm's footprint to 3,500 stores from 2,400 locations, and give the company access to markets that are considered very difficult to penetrate in the Northeast that could be lucrative.
However, the stock is down more than 18 percent for the year despite the news. Could Friday's pullback be a chance to buy this high quality mattress retailer at a discount?
Ultimately Cramer does not think there are enough stocks out there that are plays on the rising household formation, and nothing speaks more to household formation than mattresses! He put this company on his radar as one to look at after the Fed rate hike, as many housing related stocks might take a beating.
So for those investors that want to speculate on a mattress retailer, Cramer gives his blessing to buy Mattress Firm.
Read More Cramer: My off-the-radar play on housing formation
One stock that has been considered untouchable in the past 18 months is Yum Brands, the global fast food titan behind Taco Bell, KFC and Pizza Hut. Investors did not want to touch this stock due to its huge exposure to China — plagued with avian flu, food safety concerns and worries of the overall economy.
However, Yum took action back in October when it announced a spinoff of its Chinese business to create two separate independent companies: Yum China and Yum Brands, which would represent everywhere else.
The move got the stock roaring again as activists had been calling for this for months. However, Cramer still has many concerns over the spinoff and Yum's ability to execute. That is why he will be watching to see if it can turn around its Chinese business, like it said it would at its investor meeting on Thursday.
"Otherwise I'd rather ignore Yum China and stick with the stub of Yum Brands when the breakup happens," Cramer said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Analog Devices Inc: "I like ADI, people are saying it's too linked to Apple and cell phones. I think it's a good company, it's down a couple of points. I say buy."
Regal Entertainment Group: "I like the yield. I think it's OK. The whole slate hasn't been that good for movies, but I'll buy that because of the yield."
Read MoreLightning Round: Is it too linked to Apple?