Cramer says the fast food giant has lost momentum in areas where he thought they had some, such as Europe. U.S. sales were also poor. Cramer believes McDonald's no longer has what people want. He contrasts it with Chipotle (CMG - Get Report), which is all natural and organic.
Cramer thinks McDonald's and Coca-Cola (KO - Get Report) are "riding a trend into the sunset." He just does not see their offerings appealing to anyone. He notes they used to appeal overseas despite stagnant U.S. numbers, but now it looks the entire world is stagnant.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts