Jim Cramer Upgrades McDonald’s Outlook, Sees Further Upside Ahead

McDonald’s turnaround efforts are beginning to pay off and investors will likely be rewarded with more upside ahead, CNBC’s Jim Cramer said Wednesday.

McDonald’s third‑quarter results highlighted improving momentum in its domestic operations. U.S. same‑store sales fell only 0.2%, beating the 0.5% decline forecast by analysts, and regained growth in September after declines in July and August. Positive traffic trends extended into October.

Shares jumped 6.5% on Wednesday, pushing the recovery from early‑October lows past 20%. At their nadir, the stock had dropped about a third from its March all‑time high, driven by weakening U.S. sales and increased competition from a rebounding Burger King.

“We’re witnessing progress for the Golden Arches, and that’s why the stock is performing far better than it did a few months ago,” the “Mad Money” host remarked. “I remain bullish on McDonald’s— glad I stayed with it—and I believe the stock will reach higher prices.”

On Oct. 1, Cramer called McDonald’s a “show me” story following a disappointing September investor day that raised questions about renovation costs and franchisee support. Despite that, he labeled the stock “tempting” and said he would prefer to be a buyer at those levels rather than a seller.

During the September quarter, McDonald’s stepped up its affordability drive, reviving digital promotions and reallocating marketing to value‑oriented meals such as $5 and $6 combos. “Our U.S. interventions helped stabilize baseline guest counts, and we saw progress throughout the quarter,” CEO Chris Kempczinski told Cramer on Wednesday morning.

However, the quarter was not without shortcomings. McDonald’s missed revenue forecasts, and a slowdown in France dampened international performance. The company plans to broaden entry‑level value options, enhance digital promotions, and improve food quality and service. It is also testing two new value menus, with the stronger concept slated for nationwide rollout in early 2027.

With the share price well above October lows, Cramer warned that continued gains will hinge on sustained execution rather than valuation alone.

“McDonald’s shares were extremely compelling on a valuation basis at their lows a month ago, which is why I felt confident staying with the stock even when fundamentals were weak,” he noted. “Now that the stock has moved well off those lows, we’ll need to see continued execution for McDonald’s shares to keep moving back toward the highs set earlier this year.”

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