Why Jim Cramer Is Down on McDonald's (MCD) After Earnings Report

NEW YORK (TheStreet) -- TheStreet's Jim Cramer said McDonald's  (MCD) earnings "took my breath away," but not in a good way.

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), which is all natural and organic.

Cramer thinks McDonald's and Coca-Cola  (KO) 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.

Must Watch: Jim Cramer: McDonald's Not Offering What People Want

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Cramer says McDonald's has a good balance sheet and has options to bring out some value, but "they don't have it" in terms of sales and earnings.

MCD Chart MCD data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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