Jim Cramer Says McDonald’s “Understands What Our Customers in Our Country and the World are Going Through”

McDonald’s Corporation (NYSE:MCD) is one of the stocks Jim Cramer recently shared thoughts on. Cramer noted the company cutting prices on its products. He said:

“Or how about a stock like McDonald’s? Headlines come out this morning, they say it’s a big disappointment, a huge disappointment. It was a big miss on revenues, big miss on earnings, red ink. Well, it made it look like the stock had to go lower, right? But what if the red ink is wrong? What if it was just one more trick of the index sellers? All restaurants have been challenged during this period. What matters is how they respond to the darn challenge. McDonald’s, unlike so many other chains that lack the scale and the strength, is lowering prices, lowering them dramatically, and it’s working. The other guys keep hoping customers will just get wealthier, come back. They don’t want to admit that they’re taking prices way too high to levels where the consumer’s too cash-strapped to afford them because they didn’t want to miss their quarter, and they’re missing their quarters big now. That’s what we were looking at. I said before the market open, you gotta buy McDonald’s, because it understands what our customers in our country and the world are going through right now. There’s been too much inflation. So what they did, they cut prices. That’s what they did. And even though the market was bad, this stock finished up big. Why? Because the next quarter’s got the $5 sausage, egg, and cheese McMuffin, coffee, and a tater. That’s like the old days, five bucks. That’s what matters.”

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McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants that provide burgers, chicken sandwiches, fries, beverages, and desserts.

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Disclosure: None. This article is originally published at Insider Monkey.

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