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Cramer: McDonald's Beats Apple on Product Innovation

Once the exemplar of innovation, Apple's cutting-edge product development has lacked in recent quarters, and CNBC's Jim Cramer said that one company outside the tech sector is putting the one-time innovation leader to shame.

"There are two companies out there right now. There's a company that doesn't really innovate, that has no surprise factor … and there's another company that is innovating the heck out of its business, coming up with all new menu items," Cramer said. "The first one is Apple and the second is McDonald's."

McDonald's has a needle-moving strategy with its expanded breakfast offering and an increased offering of healthy options, Cramer said on "Squawk on the Street" Monday.

On Monday, McDonald's said sales at its established restaurants around the world rose 2.6 percent in May as it expanded offerings for late-night breakfasts, tweaked other menus and benefited from advertising value-priced meals.

(Read More: Late Night Breakfasts Help McDonald Sales Surge in May)

Apple, on the other hand, is expected to announce a digital radio service at its annual software developer conference, a product Cramer said was underwhelming. Although Apple has not said what it will unveil during the conference this week, major announcements have been made in the past, such as Apple Maps, improvements to its virtual assistant Siri and improved screens for Macbooks.

(Read More: Apple to Unveil Music Service, Mobile Software)

"I like (McDonald's) more than a Pandora-killer," Cramer said of Apple's anticipated plans.

"I don't see anything that Apple is offering that is going to take up numbers," Cramer said. "McDonald's is the opposite. I think this is a numbers mover. I'm raising numbers for McDonald's."

"What I trade off is numbers. If you take up numbers, I think the stock goes higher," he said.

—Reuters contributed to this report.

—By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul.

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