Cramer Quick Take: McDonald's Is On Sale
NEW YORK (TheStreet) -- The markets have put the stock of McDonald's(MCD) on sale, Jim Cramer told Debra Borchardt at TheStreet.com Wednesday.He said the company is now yielding 3.3% and that was enough to make him a buyer for his charitable trust, Action Alerts PLUS.
Cramer said McDonald's did post some disappointing numbers both in the U.S. and abroad, but noted it is up against difficult comparisons from last year. Wall Street analysts aren't helping matters by keeping their estimates high despite the company admitting weakness.
Nonetheless, Cramer said shares of McDonald's are trading at just 14 times earnings when they historically fetch upwards of 17 times earnings. He called McDonald's a "premiere company" that may not have improved numbers at the moment, but added "they will figure it out."In the meantime, shares are paying investors to wait.
Watch the full Cramer interview here.
--Written by Scott Rutt in Washington, D.C.
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