TheStreet’s Action Alerts PLUS Portfolio Manager Jim Cramer is keeping a close eye on McDonald’s (MCD) which reports quarterly results on Monday before the markets open. Analysts expect the Oak Brook, IL-based fast food giant to report fourth quarter earnings of $1.23 a share on sales of $6.22 billion. During the same quarter a year ago, the fast food giant posted net income of $1.13 a share with revenue of almost $6.6 billion. ‘The stock of McDonald’s has been on a tear – $93 to $118,’ Cramer said. ‘Normally I’d say, forget about it, you missed it.’ Cramer said CEO Steve Easterbrook has been turning McDonald’s around brick-by-brick. ‘Not just all day breakfast, but simplifying the menu, which the franchisees have bought into. [That has caused] an acceleration in comparable store sales. The stock should have been at $118 before it really broke down because of previous weak management.’ Easterbrook replaced Don Thompson as CEO back in March of last year. Easterbrook formerly served as chief brand officer for the fast food company. Cramer said it would be a gift if shares of McDonald’s drop, but he doesn’t think that scenario is in the cards. ‘Four percent comparable store sales for McDonald’s – which is the rumor – if that pans out, the stock goes to $125.’ That represents a nearly 6 percent increase from the stock’s current level.
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