The analysts expect same-store sales to underwhelm, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.
While McDonald's has been doing a great job, shares have been under pressure since early May when they topped out around $132, he said. Down roughly 11% since then, the stock couldfind some support with the dividend now yielding 3%.
"I have ultimate faith in [CEO Steve] Easterbrook," Cramer said, but the stock has been on a big run. The restaurant business is a tough one, especially with rising minimum wages. As margins are expected to decline, it's not too surprising the stock has been under pressure.
More broadly speaking, Cramer said that if oil is able to rebound, U.S. stocks will likely rebound as well. With the volatility index falling, that bodes well for equities. But if oil remains under pressure, a rally will be difficult.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.