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Game Plan: Cramer's Lovin' McDonald's

Monday, 12 Nov 2007 | 10:42 AM ET

The game plan for next week revolves around only one stock: McDonald's.

Game Plan
Mad Money host Jim Cramer has a game plan to make you some mad $$$.

McDonald's is only a point off its 52-week high despite a horrible week in the market, and it was one of the few stocks to go up on Thursday, thanks to an October same-store sales report that showed strong international growth. So as most of Wall Street braces for a recession, Mickey D's seems to be thriving.

That's going to make the story McDonald's tells at its monthly analyst meeting next Tuesday, Nov. 13 all the more compelling, Cramer said. In this environment, few other companies can deliver consistent international growth and have a decent domestic business on top of it, especially a restaurant chain the size of McDonald's. So Cramer recommends Homegamers get in ahead of the meeting.

There are some other pluses to investing in McDonald's, too. The company still has $9.8 billion dollar authorized to buy back stock, which puts a great floor under the share price, Cramer said. And while the 2.6% yield doesn't look like much, it adds up if those dividends are reinvested over time.

McDonald's is one of the best Dow plays in the brutal market, Cramer said, and the international growth should continue to push up the stock. That's why he thinks investors should buy MCD before the Nov. 13 meeting.

Jim's charitable trust owns McDonald's.

Questions for Cramer? madmoney@cnbc.com

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