>> the lsu tigers are taking on the hawkeyes of iowa tonight. that's must watch tv. i'll be watching. exxonmobil. everybody loves it now. >> thank you for watching "fast." see you back here tomorrow at 5:00 for more "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to mad money. welcome to cramerica. other people make friends. i'm just trying to make you a little money. my job not just to entertain, but to educate, teach. call me at 1-800-743-cnbc newsom. or tweet me at tumad money. that was the feedback i got

about last thursday's show opener, where i analyzed five best performance dow jones industrial average for the first quarter. so in a day where the dow lost 240 point, s&p declined 0.2%, nasdaq inched up.11, i want to ask people, would i buy any of the dow bowwows? [ barking ] the dues of the dow jones industrial average, based on declines in the first quarter. normally i don't believe in a stock pivoting in such a short period of time. three months is not a pirouette made. but i think companies can lay the groundwork, and i see some of them doing that. let's get to the five worst performers from the first quarter and i'll tell you the levels where the stocks could be enticing. i want to take the liberty to include walgreens, which was unceremoniously dumped -- sell, sell, sell! -- from the dow just after five years of its inclusion. let's take them from the bad to the truly abysmal. let's start with united health, bad. the nation's largest health insurer with a stock that fell

6% in the quarter. this stock was hurt by higher medical costs like humana. that was down 24%. yet the managed care companies are still being hurt by the post-covid hangover where people who skipped getting surgery during the pandemic are finally getting treatment. i find this issue nagging. when does it end? we can't tell. and then tonight, to add insult to injury, the health insurers got some bad news about the medical advantage plans they sell. the government is not allowing them to have much of an increase in the policies. this came out just after the bell. it is pretty negative. i think you have a chance to buy the stocks well below tonight's close, i predict downgrades or even price target cuts. i thought unh's stock might have come down this quarter past because of that change health care unit which keeps track of revenue and payment cycle. the february data breach is being one of the worst ever to hit the industry. my friends who are in the cyber security say it is just horrendous. but humana wasn't hit by hackers

and it was even worse. unh probably has the best chance for bounceback from where it bottoms tomorrow or wednesday. i just wished it fell more, though the 5% decline tonight, today alone, plus another 5% tomorrow may see a lot more traction. next up is, wow, apple. i'm very careful about what i have to say about apple here. first, this 170 stock could be down to 160, its total 52-week low because the company is thought to have no growth or may actually have down revenues. if the latter is true, apple may have a hard time staying at 160. we know that sales in china are down 17% for the iphone in february. average selling prices of older models have come down too. bad sign. there seems to be an inventory bubble developing in phones. it's all bad, people. at the same time, even after falling 10% in the first quarter, the darn thing still sells for more than 25 times earnings. that's too high given the negatives. hence why i say it needs to come

down. but apple does have two things going for it. first is the developer's conference in june with a we might hear about new exciting stuff, and we'll see if management embraces jensen huang's vision pro as a tool for the enterprise, not just the consumer product that sits in your closet, as so many people are telling me. now in his keynote jenson did the unthinkable. he talked about doing business with apple. first thing about doing business with apple, you should never talk about the name apple. he has to be pretty confident of his stance. if he can get his verse stream to build digital twins of factories to help car dealers move product, i think apple sc streams back. we still own for it the trust. i still say own it, don't trade it. it's hard to swap out and swap in, all that nonsense trading. i don't like it, not one bit. short-term loser, long-term winner? i think so. third, there is intel, which

could really rally seriously thanks to easy comparisons versus last year. on top of this morning, usb raised prices on very compelling but theoretical parts analysis. given it was down 12% in the first quarter, i wouldn't be surprised if it can bounce. the ceo demonstrated flashes of brilliance, but even more bright hubris, which is always good for three or five points from the faithful flock. all pat has to do is say margins are going to get better and that there do it. and hey, margins will get better. of course they are. fourth on the list is nike. now this is rough. the shoe business has become quite competitive, hoka shooting at nike. nikes are considered expensive. i think we've got some positive press about the china business. but it's the u.s. i am worried about. we own footlocker for the charitable trust, and that's been a mistake, partly because it sells uninspiring nikes. the whole lineup may be uninspired that said, historically, it's been hard to keep nike stock down for long.

i want to see this quarter. i believe the consumer stock paying up for some things they can get for less competition. tonight, a really ugly forecast. the stock was trading down 20% that will most certainly bleed over to all the apparel companies including nike. fifth, the dishonorable mention, the expelled walgreens down almost 17% in the period, not including the nearly 10% hit it took today. we had the ceo on thursday talking about a game plan. i think he can turn this thing around within the year. i know that's not within the month or the current quarter. that could take a little time to rebuild. i think he can pull it off, though. there is no hurry to buy this one. this story is going to take a long time to play out. finally, the worst performer in the dow, and that's boeing. and everybody on earth knows this thing is dog. [ barking ] because it gets so much well earned bad publicity. we know boeing needs to use a lot of its cash to buy spirit air systems to get control of the fuselage. that whole gamut to off-load the

parts of the plane did not include quality control. only by acquiring spirit can this company assuage the angry regulators who haven't been appeased even with david calhoun. i believe they'll insist boeing bring in someone from the outside. hard to blame them. and when they do, then you'll have a serious resumption of aircraft sales. but it won't be at the record pace that i'd been hoping for, which means this might be a long-term renter on the poorly performing list. bottom line, though, the worst performers in the dow includes stocks that have both hair and flies on them in a market that demands a pristine story. and there is nothing pristine about this list. do not kid yourself. let's go to rich in nebraska. rich? >> caller: mr. cramer, good afternoon, sir. >> good afternoon. >> caller: i am interested in oke. i bought it at the covid dip around 27 bucks, and now it's pushing 80. they've given me some great dividends. should i hold on? >> i like one ok very, very much. it still yields 5.

let's keep your position, and if it comes back down, i would actually buy more. that's how much i like it. let's go to vic from my home state new jersey. vic? >> caller: hey, ba-ba-ba-boo-yah ba-ba-ba-boo-yah, jim. i love your show. try and watch every day with my daughter, 16-month-old isabella. i got her set up with a 529. >> perfect. that's what i want. compound, compound, compound. reinvest, reinvest. how can i help? >> caller: love it. i'm on prudential. buy, stay or hold? >> in a market that i think is headed down because we're overbought. if anything maybe a little schnitzle. take a little off the table and if it goes lower, we can buy it back. but right now it's up a little bit too much. all right. the dogs of the dow so far have fleas, ticks, maybe even broken bones in a market that demands a pristine story. they'll have viable levels eventually, but not yet. tonight, after the bell we learn that recreational marijuana will be on the ballot in florida this november.

no, really, not an april fool's joke. it just happened. despite tumbling today, could this be news for the stock? cge, i'm talking to the ceo. and several conglomerates are saying bigger isn't always better. i'm looking at the 3m new spin-off, telling you how to approach it. and i'm sitting down with chipotle's top branch to find out the 50 for one stock split. what it means for the money, your money, and of course what it means for the stock. so stay with cramer. ♪ don't miss a second of "mad money." follow @jimcramer on x. have a question? tweet cramer, h#345d mentions. give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

not all caitlin clarks are the same. caitlin clark. city planner. just like not all internet providers are the same. don't settle. you want fast. get fast. you want reliable. get reliable. you want powerful. get powerful. get real deal speed, reliability and power with xfinity. she shoots from here? that's kinda my thing. business.

it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. the go-tos that keep us going. the places we cheer. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. see why comcast business powers more small businesses than anyone else. get started for $49.99 a month plus ask how to get up to an $800 prepaid card. don't wait- call today.

♪ after president biden's latest state of the union address a few weeks ago, white house began a new push toward cannabis legalization. at least maybe the reschedule ling of cannabis into something more like a high-risk prescription drug. just then the marijuana stocks caught fire, take canopy, our long-time favorite. canopy stock has surged less than 3 bucks before the state of the union to a high of 10 and change at its peak last thursday. since then it sold off hard back to 7 bucks and change after a nearly 13% pullback today. even after the declines, it's still more than doubled since we started hearing about the pseudo legalization. let's talk to david klein, the ceo of can in the top any growth. welcome back to "mad money." >> yeah, great to be here, jim. thanks for having me. >> so i don't mean to blind side you, but literally, a few minutes before we started taping, a supreme court of

florida decision came down that said there will be on the ballot in florida what looks to be full legalization. i mean, florida is a huge state. this could be terrific for cannabis growth. >> it's really good for us. it's good for the industry. our edibles brand juana is in the state of florida. this is just indicative of the research that we see that says about 88% of adults in america prefer some form of legalization. we need the federal government to catch up. >> now the two things that you want for the government to catch, one, you've got get the banking laws. and the other thing is to switch to scheduling. those seem like hard tasks. do you have any allies? or really just a couple of you guys going alone? >> i think when we think about rescheduling, that is an executive branch decision, and i think it was a good sign for the president to come out at the state of the union and say he is supportive. a week later, the vice president doubled down on that same message. and so we see that as maybe

something that happens sooner than later. and that's really good for our businesses in the u.s. to get that rescheduling. it has a tremendous positive impact on our cash flows. >> now if you did that, then, i presume that there could be credit involved with buying. so it's not all cash. and if that's the case, then i think supermarkets will get involved, not just these one-off stores. >> well, i think a lot of the distribution is still going to be regulated by the state. so i think until we have maybe a more broad-based view on how we go to market, maybe at the federal level, we'll still rely on state rules. and state rules, for the most part, have what's effectively a liquor store model where you have to sell through individual retailers. >> oh, okay. the three-tiered system. i got it. now i'm interested in trying -- we have a huge position in constellation for my charitable trust. so we're trying to understand the canopy growth usa exchangeable shares offer. i know it's not easy, but can we get a little clarity on what we're supposed to be doing?

>> yeah. so simplistically speaking, we effectively own juana, which is an edibles brand, jetty, which is a vape brand. we own a multi-state operator in acreage, and we have a stake in terasin, which is another multi-state operator. this vote takes place on the 12th of april, next week. what that vote allows us to do is merge the businesses together and have them start running together to get top line cinergys and synergies. the exchangeable share with constellation and any other investor that wants to take an interest in that allows them maybe one more firewall, if you will, between the plan touching business and constellation brands. >> oh, okay. that's much more simple. i don't know why, but we were all kind of puzzling over it. that is a very succinct way to look at it. legalization in germany, i've

always waited for europe to become what i thought was going to be rolled over with cannabis. this a big deal for you? >> it is. so we have two things going on in germany. we're one of the top medical suppliers of cannabis to germany. and the new legalization, by the way, the commercial benefits from the legalization will actually come through the medical channels. so benefits, benefits us there. we also have a brand called stores in bickle which is a store-based vapor brand that has been proudly headquartered in germany for over the last 20 years. and we think that as consumption rises in germany, that will also provide a tailwind for our vaporizer brand. a lot of opportunity in germany. >> now i would like to get a bit of an update on what i think is a turnaround of the core business, including cannabis, demand for quality products driving profitable growth of canadian cannabis. some people said this is a

high-flyer, but not if you're profitable. >> you know, jim, fing we wind back five years, i think the investment thesis is right. very large markets, strong macro trends. we're still seeing date that that suggests that almost 70% of adults under the age of 35 prefer cannabis to alcohol. so a great macro trend to get under. i think maybe the market, and many of news the market got a little ahead of ourselves on how long it would actually take to really get regulatory reform that we need, or to transition from the criminal market to the legal market. we're seeing a lot of tailwinds happen there. at the same time, we've repositioned our business so that we can actually generate attractive margins in a very competitive market like canada. so we really are excited about bringing that capable to other markets like germany and the u.s. >> one last question, because you do know the alcohol business and constellation. we're seeing a real decline on what i call the browns and the clears. the traditional drinks with people who are 21 to 26. now brown forman does not think

it's because of cannabis. i have to believe -- not because of the gop desk wants, i have to believe that cannabis is an appropriate alternative, and what you're seeing a groundswell against something that is really sugar-based in favor of something that may be much more healthy than alcohol. >> yeah, you know, look, cannabis fits really well with that gen z aesthetic where they really want to keep more to themselves. it's more relaxation versus, you know, super charged celebrations and partying. so i think cannabis fits really well. the research data suggests that they're overindexing on cannabis versus alcohol. and to your point exactly, they don't want hangovers, and they don't want the incremental calories and sugar that come from alcohol consumption. so while i remain personally bullish on alcohol, i also think that cannabis is a good substitute, and we're starting to see it show up in the data. >> i know i wanted you on because i've been waiting and waiting like you to get the

right moment. i think we may be at that moment. that's why i'm so glad you came on. david klein, ceo of canopy growth. thank you, david. >> thank you, jim. >> okay, "mad money" will be back after the break. coming up, april showers begin with a downpour of spin-offs. will a breakup within this midwest conglomerate be minnesota nice? stick with cramer. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses

move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

♪ regular viewers know that i love breakups. because when a big company divides itself into smaller more easily managed outfits, these bite-sized businesses typically do better. and wall street grabs them up. two major breakups with ge spinning off power businesses into independent companies. i told you i like that very much. and 3m doing the same thing with its health care division. i haven't talked enough about it. i want to give a deep dive. i want to start with 3m which began regular strating solventum. the stock steadily falling in part because of major litigation. they've been eaten alive by forever chemicaling and hearing loss. combat veterans, vsympathetic. business has slowed. it's been a tough road. that's not the case for the unit

which has grown steadily. solventum hasn't had a single year of negative organic growth for the past decade. it's about business from mitigation to the rest of the company. so what do you get with a solventu? $1.28 billion last year, split across four segments. more than half of the sales came from wound care and surgical solutions from advanced patient monitoring. the rest of the business is split across dental solutions, health information and purification and filtration. these are all high growth businesses. management says each of the markets can grow to a mid to single digit clip going forward. i believe in them. lots of money in these aspects of health care thanks to an aging population. plays right into their wheel house. at the same time, solventum is plenty profitable. this is interesting. margins have slid steadily lower for years, the margins of solventum have held up fine.

they'll take a senate hit from costs that come with the breakup which is typical. there are additional complications. the plan is for solventum to gradually go from a 3m to a customer. this is not ideal. solventum frames the split as a quote to reposition for growth with a goal of getting its own growth rate in line with the growth of its end markets. right now it's lag manage the industry. that's an opportunity. but look at the portfolio, choose which end markets to exit, which ones to invest further in, and they'll invest more in the research and development than they could when they were partnering with 3m. i like that. solventum looks to places to cut costs and they said to prioritize paying down debt over the first 24 months after the spin-off. i like that too. as part of the breakup, solventum is taking on debt. that's not unusual. even with, that i think the balance sheet is okay. not ideal, but it's what

happens, okay. now we don't even know if solventum wants to return cash to shareholders via dividend or buyback, but given the pri prioritization, i don't expect that to come for several years. that's negative. finally, 3m is only spinning off 80% of stock to shareholders. they're planning to hold on the to a 20% stake which they want to gradually sell down over the next five years. that's a real long-term head win if you want to own this one. i more or less like solventum's core business, but this is not the cleanest of stories, and the guidance for this year makes it clear that 2024 will be a rebuilding year for this newly independent company. maybe people have the patience for that. the good news is the stock seems super cheap. solventum trade down to $69. given their four-year earnings forecast, that means the stock is only selling for 11 times this year's earnings. that's cheap. by comparison, a company we like very much, beck and diction, it trades at 19 times this year earnings. it does deserve a premium because it has better numbers,

but maybe not that much of a premium. however, while i can justify buying solventum at these levels, keep in mind many of these spin-offs tend to have a rough time in the first few months. many people who get shares in the spin-offs don't want them. they gradually get shaken out. maybe you're in 3m because you like 3m and don't want the health care business. the old kellogg, they split up their cereal business. pretty good business. stock went from 15 to 10 before arubaing to near 20% as of today. >> hallelujah! >> the stock tumbling from the mid 80s to the mid-60s and climbed all the way back to the high 80s. that's amazing. if you're inclined to buy solventum, i recommend buying gradually over the next six months because you'll likely get a better price than you would get right now. but what about the former patient, 3m. well, it's more of parent, now get this. this is really tricky. and it's one -- my dad used to

work for 3m. so i'm very sensitive to. this it's one of the greatest stocks, and i always wanted pop's company to work. i haven't recommended 3m in a very, very long time because i hate playing litigation route legal. people who follow the club know this. but the spin-off of solventum is part of a effort of cleanup by the ceo mike roman. it's a smart one. 3m reached settlements on three lawsuits last year agreeing to spend more than $10 billion to settle the forever chemical claims and $6 billion on the faulty headphones. if you're buying 3m, you're betting the company can turn things around and they're cost-cutting like crazy. more importantly, you're betting that new management can right the ship. this stock valued more than 10% last month after mark roman new orleans shed stepping down. wall street likes 3m is bringing in a new leader, bill brown. he did a fantastic job when he

was running elf-frey harris. he is a no nonsense veteran. i think he is a great choice. i am reluctant to give a full throttled endorsement, but i'm so close. i wouldn't stand in your way if you wanted to start buying some of this stock. i'm saying you can buy 3m right here. the bottom line, though, really important. the 3m breakup is finally complete with solventum shares trading regular way. while solventum has a good but not great story, they have a valuation. just remember that new spin-offs tend to be volatile for the first months and go down. as for 3m, i know it's still risky. i know it has. but it hasn't been this attractive in years. >> buy, buy, buy, buy, buy, buy! >> you heard it, buy, buy, buy! >> let's go to work. randy in california, randy? ? >> caller: boo-yah, cramer. >> boo-yah, randy. >> caller: hey, i bought moderna

prior to them perfecting the covid vaccine. that was the good thing. unfortunately, i rode it all the way up and back down and didn't take any profit. i'm still up, but my question is in light of some vaccines that they're potentially releasing, should i sell moderna -- >> no, no. i'll invite him back on again. he was on recently. i am a believer in the technology. have i been since i met him when the stock was at 16 at the jp morgan conference. i want you to stay in. and if anything, i would be a buyer under 100. there. i really do believe in him and his technology. let's go to dan in massachusetts. dan? >> caller: good afternoon, jim. how are you? >> i am good, dan. how you? >> caller: good. you do a terrific job. thank you for taking my call. thanks, partner, appreciate it. how can i help? >> caller: novo nordisk. they're a profitable company. they have two more drugs coming down the road.

shall i invest more in this company? what do you think? >> actually, look, i got to tell you for the club we own lily, and we are betting later in the first half of the year, we're going to get approval of a very important alzheimer's drug. in the interim, lily's mounjaro is selling really well and zepbound selling really well. that's the one we want to be. in guys, this is a big recommendation. i was thinking about doing it for the club, but it's still a little early. the first is solventum. it's darn cheap valuation. remember, new spin-offs tend to be voluble. and much more money. california has raised the minimum wage for fast food workers starting today. i'm seeing how that move might impact the company's profit potential. and by the way, we want to talk about a split. i'm highlighting one market sector that wouldn't have surprise d you if you're focuse on stocks and not the bond market. we have chipotle on the stock

split. we have interesting ideas about the buybacks and home builders. we have a lot on this show. and of course we have rapid-fire, tonight's edition of the "lightning round." so stay with cramer. the fate of disney. iger versus peltz. david faber brings you the latest from disney's annual meeting. crucial insights for investors. coverage from every angle, wednesday, cnbc.

icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes!

-how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo hi, i'm ben and i've lost 60 pounds on golo. get your business online in minutes (guitar music) i've struggled with weight my whole life. i'm sure you're like me and you've tried diet after diet. if you want to stop the insanity, try golo.

two weeks ago, chipotle did something very smart, although few in this business will admit. they announced a 50 for one split stock. they don't change anything except the optics of the nominal share price. a 50-1 split will lure in new investors which is why i think chipotle shares fired in response. now even though the stock has pulled back about 5% from its post split announcement peak, it is still up more than 15% since

we last spoke to them in february after company reported a fantastic quarter. could it have more room to run? let's check in with jack hartung, the chief financial officer and administrator officer of chipotle. welcome back to "mad money." >> great to see you. >> first, thank you for bringing back alpha store. i'm sure the results once again are stellar. >> fantastic. it was one of the favorites, jim. and i couldn't tell you about the celebration that people found out that we were bringing it back. it's a big hit. >> all right. now, let's talk about something that is a big hit in our world, which is you did something i know we have been urging people to do, ceos, which is do a stock split. a lot of them come back and say jim, it's too expensive, too costly. the big funds don't want it. and not only, that you can go buy a fractional share. we countered by saying sam walton didn't feel that way. sam walton, one of the greatest investors and creators of our time. can you give us the history why you felt it was okay to do?

>> you know, jim, we studied this every year or so. we have our bankers come in and we talk about the pros and cons of doing the split. and cost was never really a big problem for us. but we couldn't really find a compelling reason until recently. there is two reasons really that led to the split. one is our employees. it was getting harder and harder for us to get the right denomination, because we reward our top performing managers with stock in a company. we want them to celebrate our success with us. and it was getting harder and harder where if you wanted to reward a manage were $4,000 worth of stock, you have to award $3,000 or $6,000. so that made it a challenge. also, when their stock would best, withholding made it tough too because withholding could only happen in full value shares. if you had let's say you had $3,000 worth of value that was created, the only withholding you could accomplish was one full share, which basically would wipe out most of the value. so for that reason, that was a big reason for us to do it.

the second one, though, about a year ago, our investors started telling us that separately managed accounts were a problem to get the liquidity. these accounts tend to be small, in the 50,000 to 100,000 range. but in total, they're the fastest growing investment class. and they total now over $2 trillion. so it's a lot of small accounts that add up. so if you got a $50,000 account, your choice is either to have no exposure to chipotle or you have to overindex and get a 6% exposure to chipotle when our stock is riding at 3,000. that's what led to let's do the split. >> that's remarkable. we've been doing pieces all day today about how the investor class has gone to the point where it's now 58%. and i always found it curious. well, geez, what are they buying? and you've hit the nail on the head. they're not buying these multithousand dollars stocks. and yet those have some of the best stocks. now did you get any pushback from some of the big mutual

funds who say listen, now we have to pay for share. >> not by one. we were with some of our investors last week. well didn't have one question, one comment about it at all. generally over the years when we talk to the largest investor, a few brought up the separate management accounts. but other than, that our largest investors care about our growth. they care about our results. they care about that we're still going to deliver on our promise of cultivating a better world. as long as we deliver on those strategies and deliver the growth they come to expect from chipotle, they're very happy with the split. >> i imagine when you're going from say you think you are doing $3 million for average units to $4 million. i bet no one is unhappy about that and doesn't want to pay up because of a couple of pennies more. they're fools. how is the road map to 4? >> the 4 million, jim, is going to be a lot of more of the same. the single biggest opportunities is to run great restaurants.

right now we're at a stage where our managers have really rebuilt this group. it has been really a hallmark of chipotle. people love the chipotle food. the only thing they don't like about chipotle is walking in and having to stand in line. when through-put is really working for us, again, it's early days, but our managers are doing a fantastic job. we're seeing some of the fastest we've seen in a number of years. and that means more customers in the front line. of course, our digital visits still almost 40% of our business. so now we've got two significant businesses that are working really, really well at the same time. of course, we'll still have a couple of ltos every single year. our marketing team will continue to emphasize our real cooking from scratch, our real ingredient and continue to feature our employees and our restaurants. and that's a great branding message. and then we've still got our digital access point as well, including our loyalty members which is now approaching 40 million members. we have a lot of levers to pull. but i would say the number one

is just running great restaurants every single day, including breakthrough. >> now you have done a really amazing things with robots. when i was out in nvidia, i was thinking they should be learning from you. you created chippie you created. and then the avocado maker, you created that yourselves, right? >> yeah. so avocado, we're working with an outside party, but we're making investments in these companies. so we're co-creating with them. what we're trying to do is make sure we maintain theessence of cooking in a restaurant. like for example, we're not going to have guacamole made outside the restaurant and brought in. but if we can make our teams' jobs easier so they don't have to spend as much time cutting, coring avocados, they'll still hand mash it. they'll still cut the pepper by hand, cut the onions by hand. the guacamole you have at lunch is going to be made that morning. but the idea of avocado will take away a time consuming and a less pleasant task for our

employees. there is another opportunity we're looking at as well and codevelop from a technology standpoint with hyphen, and it's really automating the digital make line. so we have as i mentioned, we have nearly a $4 billion business on our digital make line. we're making a lot of bowls on that line. and if we can make that easier for our team so at least the bowl-making opportunity is done automatically. and then they can make sure that our -- our crew can make sure that the sides are done accordingly, that we roll the burritos, the tacos, it's going make their job a lot better. >> one last thing. the california law comes into place today. you do have to raise the salaries of people in california. have you budgeted that for the year how that will go? and you ready for it? >> we have. we're ready for it. we haven't raised yet, jim. we didn't want to raise prices on april fool's for obvious reason. but this week we'll take an increase. our approach is to break even so

we can offset the impact. it is a significant increase in wages, even though our wages are generally above others. it's still going to be a high team almost 20% increase. we do think we will farewell in this. we do think we offer great value. in california, even the costs of doing business are higher in california, a burrito before the price increase is about the same as it would be in the middle of the country. so we've had great value in california. we're going have to spend some of that value to try to offset some of the wages. >> i understand, so people know, i think this is important that if you had invested $750 in your stock when you came public, it's worth about $100,000. and i think that anyone who is worried about what a stock split can do from the institution ought to think about 750 going to 100,000. well played. jack, it's great to have you back on the show. good to see you. >> good to see you, jim. thank you. >> that's jack hartung, cfo of chipotle. what a story, guys. now you'll be able to buy it in the split which is what we really want. because we know that you don't want fractional shares.

you want the real deal. "mad money" is back after the break. when we return, master the markets, one stock at a time. the "lightning round" is up next. so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled.

that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

♪ it is time. it's time for the "lightning round"! cramer -- and talking about buy, sell, sell, sell, the caller's questions, you play this sound -- [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round." jonathan in pennsylvania, jonathan? >> caller: boo-yah, jim. always a privilege to speak with

you. >> i'm so glad you called. what's up? >> caller: jim, you should know and the staff should know the investing club is making me a more mature and disciplined investor. >> that's what we want. thank you. >> caller: you know, i love how the club marries the technical, fundamental and equally important emotional aspects of this. >> then we're getting it right for you, and i appreciate that. thank you. >> caller: yeah, thanks for all the hard work. hey, real quick, what do you think about this company that is usually a steady eddy, tyler technologies? >> that's a very well run company. i got to tell you that government business is a good business, and i think it's a buy. i like it that much. let's go to shara in pennsylvania, shara? >> caller: hi, jim. how you? thanks for taking my call. and my daughter last week. >> so happy, thank you so much. we're so happy. >> caller: so i've been a long-term shareholder with cisco, and i don't know if i should sell and get into something else -- >> no, you're fine. i like this deal. i think it's going to give a

couple of quarters of pretty good lift. and you have a 3% yield. i would certainly hang on to that. thank you for mentioning emma. it means a lot to me let's go to dave in illinois. dave? >> caller: dr. cramer, happy new beginning of the 20th season of "mad money" with jim cramer, my good mad friend. >> we've been around. thank you, dave. we've been around. how can i help you? >> caller: jim, this stock provides end to end solutions and e-commerce for large parcel goods. given cloud technology is a horse some 50% on the year. it seems to me a be a hidden gem. >> dave has stumped me. dave from illinois has stumped me. i'm going to get ben down here right now. we're not going let this happen. we have more work to do. and we will get it done. let's go to charles in texas. charles? >> caller: charles riley calling from huntsville, texas. >> huntsville, texas.

the other huntsville, the other huntsville. right. >> caller: i want to know what you think about a stock that caught my eye that seems to have good upside. that's kgs, kodak gas services. >> let's ring the register. no, no. i can't count -- that stock is going up too much. i'm ka-chinging that one. i'm ka-chinging. let's go to cj in florida. cj? >> caller: hey, boo-yah, jim. >> thank you, cj. what's up. >> caller: thank you for sharing all your wisdom. >> thank you. >> caller: and helping people gain wealth and keep it. >> thank you. >> caller: i want to get your take on a stock that i think you were in favor of just maybe a month ago, planet pltr. >> palantir, i like it. i thought they had a good quarter and defense business. i like i.t. defense work, and they own that franchise. it's very, very point of view. let's go to mary jo in new york. mary jo? mary jo?

>> caller: yeah? >> you're up. jim. >> caller: oh, boo-yah, jim cramer. >> boo-yah. >> caller: from the horse racingest little town in the great northeast, saratoga springs, new york. >> i love saratoga. adirondack 46. people don't know about that. >> caller: my question concerns united airlines. bought some in november. it's up about 25%. your thoughts. hold. >> you have a nice gain there and i would do some ka-chinging. i think that's terrific. it's an airline. all airlines are trades. they're all trades. marcus in georgia. marcus? >> caller: boo-yah, jim. >> boo-yah, marcus. >> caller: thank you for taking my call. >> of course. >> caller: i'm calling for the stock beating earnings the past two quarters. what are your thoughts on cocoa? >> i think they're a good stock.

i'd like them to come on. that's a nice little story. you get a story like that, could it be like a celsius. you never know. it could keep going up, up. >> up. julie in minnesota. >> caller: hi, jim. thanks for taking my call. >> caller: of course. so i started trading fastly back in late 2020. and i held on to it then, and then the stock started to fall. so i purchased more over the past few years to average down my costs. >> right. that's not one of my faves. what can i say? i'm not going to endorse that stock. i didn't think the last couple of quarters that good. maybe someone takes them over. but i see nothing that makes me want to buy it. and that, ladies and gentlemen, conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by charles schwab. coming up, how did home builders thrive in a rate wrought environment? when we return. tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms.

unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. (grunting) at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses new world ideas. move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit,

we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

>> it was a little intimidating, and you inspired me to jump in. >> join the club now. go to cnbc.com/jim. we always have to watch the

fed. we always have to watch the bond market. but you can't become a slave to either if you're trying to make money in the stock market. [ buzzer ] i say that because if you took your cue completely from the fed or the bond market over the past several years, you ended up being dead-wrong. like just horrible. >> they know nothing! >> if you only watch the fed and the yield curve, you were told that was a terrific recession. something that wasn't taken as gospel, but totally led you astray. it was wrong if you were trying to pick stocks. i want to demonstrate with the single most obvious group you would have gotten very wrong if you only cared about the fed yield curve, and that's the housing stocks. where short rates go above long rates, a classic sign of impending recession. coupled with a federal reserve that seemed determine to break inflation by any means necessary, the home builders, they should have been obliterated. the more you knew about the fed's next move you should have been age to predict anything

housing related would have been a disaster. but as i did for cnbc investing members this weekend, the real disastrous betting is the housing stocks. the company head up. there was no recession, no reckoning. the home builders with very smart. during the whole expansion, rather than putting lots of money to work building houses, they put their money to work buying back stocks. >> buy, buy, buy, buy, buy, buy! >> the last few years lennar has gone from 286 million to 246 million. toll brothers, pulte, kb 87 million to 76. and dr horton 737 to 33 million. unbelievable. the share count reduction was what matter. not the yield curve. what were passive index fund, a company that wants to move its stocks up just needs to buy its shares aggressively. i checked a dozen industries this weekend, and the more of the companies bought back the

stock, the higher the stocks went. sure, there were nvidia-like instances, but for the most part sectors where companies bought back stocks en masse were the better performers. why bring this up? the home builders were crushed because interest rates tore higher. while the markets technically overbought according to the oscillator that i follow, i think you should be a buyer of the home builders when we aren't overbought any longer as they have been a propensity to shrink the float on any one of these big declines. when i seek the executives, i hear the home builders are crushed. in part because housing builders are up from years ago they believe the stocks are too cheap versus the land they're sitting on. so they cheese chose to buy back their own shares and shrink the float. if these companies build too many homes, the prices will come down regardless of mortgage rates. why not buy back stock cheaply? it just makes too much sense not. to especially in the environmental zoning laws make it hard to put up new housing. the moral of the story, if you

or we just focus on the fed or the bond market when you buy stocks, you're going to miss any chance that comes from stocks that are plainly too cheap and must be bought on any weakness. >> buy, buy, buy! >> i like to say there is always a bull market somewhere. i promise to try to find it for you just here on "mad money." i'm right now on last call, breaking development on the ai front, a major cross-border deal just announced , call it the meme massacre, a stock controlled by one donald j trump. minimum wage going supersized. fast food companies scrabbling as 20 bucks an hour arrives in california. one owner joins us on what e's going to do next. a target on tesla's back, speaking on critical numbers tomorrow. plus the top moneymaker