More Squawk from Jim Cramer: McDonald’s (MCD) Weak Domestic Sales Are ‘No Shocker’

TheStreet’s Jim Cramer said McDonald’s (MCD) should add new promotions and technology to its locations.
By Kaya Yurieff ,

Updated from 10:22 AM EDT.

NEW YORK (TheStreet) -- Shares of McDonald's (MCD) - Get Report are slumping 4.03% to $122.26 early Tuesday afternoon after the fast-food giant posted higher-than-expected earnings and in-line revenue, but weak same-store sales in the U.S. for the 2016 second quarter.

"It's by no means the swan song for [CEO Steve] Easterbrook. The guy has done a remarkable job...Can they miss for a given quarter period? Yeah," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

During the second quarter, McDonald's same-store sales in the U.S. increased 1.8% from last year, while analysts were expecting growth of 3.2%.

"We all knew that domestic was going to be weaker. This is no shocker," Cramer added in the above video.

"They've got some promotions that are good," Cramer noted.

Additionally, he said that McDonald's all-day breakfast has not "run its course."

"You need some new promotions and technology. And I know he's going to bring technology, but he hasn't brought it yet," Cramer said of Easterbrook.

"The last quarter was not sustainable and that's what we're finding out now," Cramer stated, referring to the company's first quarter.

He also mentioned that McDonald's shares gained because of its recent Pokemon Go deal in Japan. 

"Now it's coming back to earth," Cramer said of the stock.

About 8.19 million of the company's shares were traded so far today vs. its average volume of 5.27 million shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, expanding profit margins and good cash flow from operations.

The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MCD

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