Jim Cramer Praised These 6 Companies’ Exceptional Management

1. Brinker International, Inc. (NYSE:EAT)

Number of Hedge Fund Holders: 41

Brinker International, Inc. (NYSE:EAT) owns, operates, and franchises casual dining restaurants, primarily under two brands: Chili’s Grill & Bar and Maggiano’s Little Italy. Here’s what Cramer said about the company:

“For instance, I want to start with someone we had on the show last night. He’s making more money for you than any company I’m talking about. I’m talking about Kevin Hochman. He’s the CEO of Brinker. Hey, just because it’s small doesn’t mean you can’t make money, there’s no rule. You may know them as the parent of Chili’s… It’s a chain of 1200 casual dining restaurants in the U.S.… A few years ago, Hochman departed a high-level job at Yum Brands where he ran KFC in order to take the helm of Brinker…

I always liked the price point… But I never liked the stock, nothing special, marginal, meaningless, and then less than three years ago, Hochman came roaring in as CEO and it’s never been the same. He simplified the menu that’s too hard… He gave you a value meal dinner under 11 bucks, an inexpensive, terrific mixed drink with real good tequila, special management, and… by the way, and a delicious dinner for everybody… The result? The stock’s now up more than 340% in just the past year.”

Cramer noted that if the Brinker (NYSE:EAT) stock reaches $200, it could potentially become a “10-bagger,” considering it’s already trading at $182. He referenced legendary investor Peter Lynch, who famously emphasized that hitting a 10-bagger is the ultimate goal for any investor. The term “10-bagger” refers to investments in the stock market that have grown ten times in value, as well as those with the potential to experience tenfold growth.

Cramer mentioned that Lynch, known for managing the Magellan Fund and for writing the widely regarded business book One Up On Wall Street, has long promoted this idea. Cramer believes that Brinker (NYSE:EAT), under the leadership of CEO Hochman, has the potential to achieve such a return for investors.

While we acknowledge the potential of Brinker International, Inc. (NYSE:EAT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article was originally published at Insider Monkey.