Cramer says if management makes some changes or if an activist investor gets involved, then the stock will climb higher. In the meantime, Cramer notes investors are protected by the yield, even with interest rates climbing.
Therefore, he thinks McDonald's is a "buy" rather than a "sell" at this juncture.
McDonald's announced Monday that its November sales dropped 2.2% worldwide and 4.6% in the U.S.
TheStreet Ratings team also rates McDonald's as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCDONALD'S CORP (MCD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: MCD Ratings Report