Quick Take: Cramer Picks Panera Over McDonald's

NEW YORK (TheStreet) -- TheStreet's Jim Cramer and Debra Borchardt met to compare McDonald's (MCD) and Panera Bread Company (PNRA).

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.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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