Cramer -- China Not Sweet on Hershey; CarMax Needs More Clarity

NEW YORK (TheStreet) -- Hershey Company (HSY) shares are down 2.6% on Friday following the company's somewhat disappointing earnings results

Along with currency fluctuations, one thing that really stuck out was China, TheStreet's Jim Cramer, co-portfolio manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Chinese consumers are changing their consumption patterns, and Hershey doesn't yet have a large presence in China's high-end chocolate market, he said. 

HSY Chart
CarMax Group KMX and Hershey Company HSY data by YCharts

While management blamed macro economic weakness for the disappointment, Cramer said he's not buying that reasoning. He believes it has more to do with the long-term shift in Chinese consumption. 

Despite Hershey's report, he still likes Starbucks (SBUX) and thinks Yum! Brands  (YUM) won't be affected by changing tastes. Both companies have a large presence in China. 

Shares of CarMax Group (KMX) are also lower, down 3.2% after the auto seller reported in-line earnings per share results and missing revenue expectations. 

"I happen to like this company very much," Cramer said, but the slowdown in used-car sales is concerning. Investors need clarity on this situation, which is dragging the stock lower, he added. 

Auto part suppliers look more attractive, given the strength of the current auto market, Cramer concluded.

At the time of publication, Cramer's Action Alerts PLUS had a long position in SBUX.

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