Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s

McDonald’s Corporation (NYSE:MCD) was among the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market. When a caller mentioned that they are worried about the stock, Cramer said:

You’re worried about McDonald’s? Nah, you don’t need to worry about McDonald’s. Look, McDonald’s, it does have a, it has a beef issue. Beef is too expensive. But it yields 2.6, it’s got a great reputation, and it sells at 21 times earnings. It can get down to 18, 19. Here’s the way you do McDonald’s: You want to buy 100 shares? You buy 25 at 280. This is what I’m doing, by the way, with some of my stocks in my Charitable Trust. I’m buying really small amounts way down, get a better basis. 25 at 279, 25 at 270, 25 at 265, and then 50 if it does get to 260, and then you’ll have a great basis, and you’ll be doing just terrific.

McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants that provide burgers, chicken sandwiches, fries, beverages, and desserts.

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