Cramer: Darden Q4 was great—here's why

Cramer: Why Darden earnings were great
Cramer: Why Darden earnings were great   

Investors should keep an eye on Darden Restaurants' stock after the company posted better-than-expected quarterly results, CNBC's Jim Cramer said Tuesday.

"I focus on the fact that Olive Garden had 3.4 percent comps, which isn't bad. That's up from 1.3 [percent]." Cramer said on "Squawk on the Street." "They have every menu price covered."

Cramer made his remarks after the company reported adjusted quarterly profits of $1.08 a share, beating estimates by 15 cents. Darden also said it would spin off its real estate assets into a REIT.

"I liked everything in the quarter and they give you the REIT as the cherry on top," Cramer said.

Darden shares surged more than 3 percent in morning trading.

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Cramer also discussed fast-food restaurant Sonic's forecast, saying it is not as bad as people think.

Cramer's stocks to watch: SONC, VZ & more
Cramer's stocks to watch: SONC, VZ & more   

"They're buying back a lot of stock. I think they're still in good shape in spite of betting that they were going to have really good forecast. I would not be a seller of Sonic down this much," he said.

The company reported quarterly earnings per share of 36 cents, in line with estimates, while revenue beat Wall Street expectations. It's full-year outlook, however, came in below forecasts.

Sonic shares were down more than 10 percent in morning trading.