As investors enter the thick of earnings seasons, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, is taking a look at the biggest names on deck.
First, there's Chipotle Mexican Grill (CMG - Get Report) , which reports Tuesday after the close. Analysts expect earnings per share of $2.19 on revenue of $1.19 billion. Earnings estimates are down from $2.27 just 30 days ago and $2.41 90 days ago, partly due to the company's recent norovirus relapse.
"What can I say?" Cramer asked, explaining that he previously believed it would take 18 months from the restaurant's last outbreak for investors and consumers to move on. That timing would have been around now, with Chipotle's last outbreak occurring in December 2015.
"It's not a buy," Cramer said of Chipotle after the latest breakout.
Elsewhere in the restaurant space, McDonald's (MCD - Get Report) is set to report earnings Tuesday before the open. Analysts expect the company to earn $1.62 per share on $5.96 billion in revenue. The stock has had a big run, but that doesn't mean the rally is finished. Just when McDonald's stock looks like it might be done rallying, CEO Steve Easterbrook seems to shock investors with yet another new feature or catalyst, he said.
Cramer thinks McDonald's comp-store sales will be better than investors expect and perhaps McDonald's will rollout its new affinity program. It's also a great play on a weaker U.S. dollar, Cramer added.
Finally, he touched on Domino's Pizza (DPZ - Get Report) , which will also report earnings on Tuesday before the open. Analysts expect Domino's to earn $1.23 per share on $614.39 million in revenue for the most recent quarter.
"It's a technology company that sells pizza," Cramer explained, adding that the "stay-home thesis" remains quite strong. He's referring to his own thesis that at-home services and products like Netflix Inc. (NFLX - Get Report) , Amazon.com Inc. (AMZN - Get Report) and Domino's continue to thrive in today's economy.
The stock has run, but it's still got "very good" long-term trends and a fantastic asset-light business model, Cramer reasoned. If investors want to be long, they can buy half the stock now and the other half after earnings if DPZ stock pulls back, he concluded.
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