Jim Cramer on McDonald’s: “QSR I Think Is the Better”

McDonald’s Corporation (NYSE:MCD) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. A caller asked if the stock is a buy, sell, or hold, and Cramer replied:

Okay, McDonald’s is very tough because it’s breaking down here. It sells at 21 times earnings. The quarter was just okay, 2.7% yield. I want to buy this on a yield basis. If it gets to 3%, I do want to buy it, but remember, we just had QSR on, Burger King, and Burger King’s winning now. QSR I think is the better, whoa, the better company than McDonald’s, Pat Doyle, executive chair.

McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants that provide burgers, chicken sandwiches, fries, beverages, and desserts. Cramer called it “worth buying” during the May 1 episode, as he said:

Now, Thursday’s McDonald’s report, and you know this is a, here’s a surprise in itself. It always surprises to the upside. The competition has become less effective. I mean, McDonald’s has a value package that seems so popular. The stock’s been drifting lower. I think it’s definitely worth buying.

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