Zoe's Kitchen has been "one of the great growth stories in retail and restaurants," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading."
The story is good, the results are strong and the company has "terrific Mediterranean food," Cramer said. But he's leery of a stock that, despite today's drop, is still up 24.4% in the past month, coupled with the fact that the CFO resigned.
While Cramer would rather wait on Zoe's Kitchen for now, he sees potential in McDonald's (MCD). Although the stock has struggled for much of the past three years, he believes current CEO Steve Easterbrook may be finally turning things around.
Don't underestimate the timing, though. This will be a long-term turnaround, Cramer cautioned, but it's one that can get done under Easterbrook's leadership.
The company recently reported its store count declined for the first time in 40 years, showing that the turnaround has indeed begun.