“McDonald’s (MCD) Had A Very Good Quarter,” Says Jim Cramer

We recently published 12 Fresh Stocks Jim Cramer Discussed Along With His Latest Thoughts On Quantum Computing . McDonald’s Corporation (NYSE:MCD) is one of the stocks Jim Cramer recently discussed.

McDonald’s Corporation (NYSE:MCD)’s shares are up by 2.5% year-to-date despite the multifaceted turmoil that the restaurant sector is facing. Restaurant firms have suffered from a price-conscious customer and turmoil in the beef industry. However, Cramer has repeatedly pointed out that McDonald’s Corporation (NYSE:MCD)’s scale has meant that the restaurant chain has been able to lower prices as consumers struggle. In this appearance, he also praised McDonald’s Corporation (NYSE:MCD)’s latest quarterly earnings report. The results saw the firm’s same-store sales grow by 3.6%, but its revenue and EPS missed analyst estimates. Yet, despite the miss, Cramer asserted that McDonald’s Corporation (NYSE:MCD) had a good quarter:

“But wow, I don’t know, even Shake Shack, anybody who sells, has beef, is hurting, with the exception of obviously, once again, McDonald’s which had a very good quarter.”

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As to why he believes McDonald’s Corporation (NYSE:MCD) had a good quarter, here’s what Cramer said after the earnings:

“Or how about a stock like McDonald’s? Headlines come out this morning, they say it’s a big disappointment, a huge disappointment. It was a big miss on revenues, big miss on earnings, red ink. Well, it made it look like the stock had to go lower, right? But what if the red ink is wrong? What if it was just one more trick of the index sellers? All restaurants have been challenged during this period. What matters is how they respond to the darn challenge. McDonald’s, unlike so many other chains that lack the scale and the strength, is lowering prices, lowering them dramatically, and it’s working. The other guys keep hoping customers will just get wealthier, come back. They don’t want to admit that they’re taking prices way too high to levels where the consumer’s too cash-strapped to afford them. . .”

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