McDonald's posted year-over-year global sales growth of 2.6%, and a lot of it can be attributed to the new menu. Featuring healthier selections such the new egg white breakfast sandwich, McDonald's has been able to drive sales to a different, more health-conscious group.
Cramer says that the current estimates might be too low for McDonald's headed into the quarter.
However, when asked whether he preferred McDonald's or Panera, he said it was a no-brainer. "That's easy, I really like Panera," he responded.Borchardt pointed out that Panera has a high valuation, but Cramer insisted that the growth justified it. He said that Panera could easily double the current number of restaurants and still be fine. The path to long-term growth is there for Panera, which has a very strong loyalty program. Although Cramer prefers Panera, he did say that he would reverse his opinion if McDonald's was back below $90. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.