Updated from 10:24 AM EDT

NEW YORK (TheStreet) -- Shares of Dollar Tree (DLTR) - Get Report and Dollar General (DG) continue to rally in afternoon trading on Thursday, gaining 12.98% and 4.90%, respectively, following the discount retailers' first quarter financial reports. Both companies delivered earnings that topped estimates and solid growth in same store sales.

"It says something about America," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning after questioning what these quarterly results say about the middle class in the U.S.

"The amount of money they are making... is extraordinary," Cramer added.

Dollar Tree's comparable store sales increased 2.3%, while Dollar General's same store sales were up 2.2% at a time when many retailers are posting negative comparable sales.

"A lot of this is consumables," Cramer explained. "These places have done a lot better with food."

Cramer noted that the dollar stores have cheap products that are good for seasonal decorations, as well as excellent managers and merchandise.

"This is not your father's dollar store," he observed.

Cramer also looked back at Dollar Tree's acquisition of Family Dollar, which closed in July 2015 and has greatly benefited the company.

"We often laugh at mergers," but "it was a great deal," he commented.

"It's not about Dollar Tree having 6% comps, it's about the fact that Dollar Tree bought Family Dollar and has really monetized it well," Cramer added in the video, above.

"If you and I are going to open a lemonade stand we are going to sell them for a dollar," Cramer told his "Squawk on the Street" co-host David Faber.

Separately, Dollar Tree has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's robust revenue growth, good cash flow from operations and increase in net income.

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

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 article's author.

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