Wendy's holds the upper hand in the eternal struggle between fast food heavyweights, CNBC's Jim Cramer said Monday.
Posting better-than-expecting preliminary fourth-quarter earnings Monday morning, Wendy's appears fresher than its chief rival—McDonald's— as new offerings and a changing menu carve out a space somewhere between fast food and fast casual, according to Cramer. The optimism comes several days after UBS downgraded Wendy's stock with a "sell" rating, a move that Cramer questioned.
On Monday, Cramer went further and contended that Wendy's had plenty of room for growth, unlike its rival.
"Why the heck was everyone so negative about this one?" Cramer said on "Squawk on the Street." "I think there are a lot of people that feel that there's no room for them. That's untrue. There's plenty of room."