Cramer Picks Wendy’s As The Next Big Fast Food Stock

The Dow Jones industrial average posted its worst drop in five weeks, falling 96 points as investors worries returned over the strength of the economy. Financial stocks led the selloff with AIG (AIG: 38.47 -1.28%), Citigroup (C: 4.10 -0.49%) and Wells Fargo (WFC: 27.73 +0.14%) all falling big. One stock that wasn’t falling on Tuesday was Wendy’s after the fast food retailer got a strong endorsement from Mad Money host Jim Cramer on Monday. 

Wendy’s (WEN: 4.36 -0.23%) stock soared 6.3% after Cramer said Wendy’s is “the next big fast-food stock to make its move to higher territory”. Cramer sees a big opportunity for Wendy’s to expand its breakfast menu which currently only accounts for 2% of their total orders. The company is also expanding internationally with new locations in Saudi Arabia and Singapore. Cramer believes that Wendy’s is a buy and investors appear to be jumping in. 

Dell (DELL: 13.24 +0.61%) fell 1.6% after Cramer hinted that he is bearish on the stock. The Mad Money host feels that Dell won’t have a very good quarter and that the stock price has probably stalled. “.I think you only have a couple of points left in Dell”, said Cramer. 

U.S. Steel (X: 44.33 +1.28%) was another bearish stock pick of Mr. Cramer. The materials stock fell 1.5% after Cramer said the stock looks too expensive relative to Nucor (NUE: 39.14 -0.05%) after its recent monster move. 

Other Cramer stock picks: 

Yahoo (YHOO: 13.88 +0.87%) fell 1.2% – “The problem is that Carol Bartz set the bar so high she can only disappoint. At a certain price it is good. I don’t know about the earnings…don’t buy. I was expecting more myself and was disappointed.”

Oracle [[ORCL] inched up 0.1% – “I would like to be a buyer right now”

Navistar (NAV: 51.71 -0.73%) dropped 0.1% and Paccar (PCAR: 45.82 +0.50%) fell 2.5% – “I think the world of Navistar. I also like PCAR. I think the trucking cycle will come back, but it is a 2010 story not a 2009 story.”