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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV