Stocks were rising Thursday amid choppy trading after House Speaker Nancy Pelosi told Treasury Secretary Steven Mnuchin she wouldn’t agree to a standalone relief bill for airlines without a guarantee they would address a more comprehensive package.
TheStreet’s Katherine Ross discussed breaking news in the stock market on Street Lightning. Cramer spoke about the latest earnings from, Citigroup’s low share price and why McDonald’s is among his must-own food stocks.
Domino’s Stock: Buy Or Sell?
On Thursday, pizza chain Domino’s reported weaker-than-expected fiscal-third-quarter earnings. Revenue increased 18% from a year earlier to $967.7 million, topping the estimate of $953 million.
The higher U.S. revenue reflected “customer ordering behavior during the COVID-19 pandemic,” Domino’s said. Consumers who stayed in during the pandemic often ordered food delivered to their homes.
Shares of Domino’s were down 6% in trading Thursday.
Cramer said, “Far too often, a stock is down and then people try to ascribe why it’s down. Domino’s stock is one of the greatest of all time. The costs are not really up here and what you care about is revenue and the revenue is fabulous.”
Citigroup: Too Low To Sell
Citigroup was fined $400 million by federal authorities for problems with its risk management controls.
The stock was down 0.30% to $44.97 on Thursday afternoon.
Citigroup was also ordered by the Office of the Comptroller of the Currency to seek its approval before making any “significant new acquisitions.”
Cramer said, “We saw it in the 60s, 70s and the 80s that $45 was too low to sell. It should go up to $70. But let’s see what Jane Fraser (President of Citi) does.”
McDonald’s Stock: Buy Or Sell?
McDonald’s U.S. comparable-store sales rose 4.6% in the third quarter. In the U.S, sales benefited from “strong average check growth from larger group orders as well as a strong performance at the dinner daypart,” McDonald’s said in a statement.
Earlier this week, McDonald’s added three new sweet dishes to its popular breakfast menu. It also introduced a meal in collaboration with the Colombian reggaeton singer J Balvin. This came a few weeks after McDonald’s reportedly ran out of burgers due to massive demand for rapper Travis Scott’s meal.
Cramer said McDonald’s stock was up because of the menu change. “Anytime McDonald’s has done something interesting people check it out — whether it’s their breakfast menu or the green milkshake on St. Patrick’s Day. I feel McDonald’s is a must-own. In the food cohort its Wendy’s, McDonald’s or Chipotle, you should own one of them.”
None of these stocks is a key holding in Jim Cramer’s Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.
This article was originally published by TheStreet.