#1 Coffee Stock: Cramer

Alix Steel talks to Jim Cramer about coffee and fast food stocks. Below is a transcript of the video.

Alix Steel: Jim, you made some coffee trades on "Mad Money." You highlighted Starbucks (SBUX). Do you think that its cost control, restructuring is done?

Jim Cramer: Well, I think that.Yes. It's got to be topline from here. And topline is going to come from India, Vietnam, China, expansion worldwide because we're kind of topped out here in America. But also the Keurig, the single cup phenomena is sweeping the country. It's going to be double digits soon.

People in this country have coffee makers and they are recognizing that you don't need ten cups. And that was the essence of the coffee makers you see in the department stores or in the Target are ten cup. And yet, what people want is the Keurig, and the Keurig and Starbucks, now that Kraft (KFT) is out of the picture, they are going to be really terrific. So domestic will be single cup and international will have a lot of growth.

Alix Steel: Now, you didn't mention McDonalds (MCD).

Jim Cramer: Yea, you know, McDonalds is one of my favorite stocks. It's funny. I have been writing about McDonald's and Nike (NKE) during the, like always buy these two when they get hammered. These are the two great senior growth stocks of our life time, I think. But in the end, this corporate market is very, very big. I had to slam Peet's (PEET) yesterday because Peet's just is ridiculous valuation vs. Starbucks but I bet you Peet's goes higher anyway.

Alix Steel: Right. So can McDonalds be a coffee player or is it more about really about fast food, international growth?

Jim Cramer: I think it's the dollar menu and international growth. Those are really the keys to McDonalds. It's interesting. If you were to buy, we did some work for "Mad Money," if you were to buy McDonalds after every single number that's a monthly number that's bad, some of the best trading in the world.

Alix Steel: Really? And one more quick question. I was noticing on the charts. Coffee is up, you know, 12% for the year but that speculative traders are actually increasing their short positions and decreasing long. So I wonder how closely correlated Starbucks is to the coffee price.

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