Ramish Cheema
4 min read
In This Article:
McDonald’s Corporation (NYSE:MCD) is one of the Jim Cramer Reveals Potential US Rare Earth Trump Card & Discusses These 11 Stocks.
McDonald’s Corporation (NYSE:MCD) is a frequent feature of Cramer’s morning show. The fast food giant’s shares have lost 1.7% year-to-date primarily due to 5% since mid-June. McDonald’s Corporation (NYSE:MCD), like other food companies, is at the risk of its business being disrupted or shrunk due to GLP-1 drugs as they help users control their hunger. The shares fell in June after a downgrade from Redburn. Commenting on stock downgrades, Cramer outlined:
“[On a third downgrade based on a lower value proposition than before in case of a recession] They’re gonna be wrong. They are gonna be wrong. Okay Kempczinski is under fire because of the chicken strips and then next week we’ll all get chicken strips with the wraps. You want to see how ugly chicken strips are, they’re ugly, they don’t look like, I don’t know what they look like. . .but I know that Chris will kill that if it doesn’t sell . . . And people are really underrating Chris. He is a great CEO. McDonald’s has a history of getting rid of CEOs if they don’t work, getting rid of dishes if they don’t work.
Earlier, Cramer discussed Morgan Stanley and Loop Capital downgrading McDonald’s Corporation (NYSE:MCD)’s stock:
“It amazes me that analysts refuse to learn from their mistakes that some stocks should not be taken off the buy list. Today, Morgan Stanley downgraded the stock of McDonald’s, saying it’s arguably too expensive and that it will probably not be insulated from some structural pressures on fast food. Now, with the stock at 25 times earnings, consensus estimate’s too high. Morgan Stanley moved [it] to Equal Weight or Hold. [The] stock dropped $2 and 58 cents or 0.84% on that.
