Mad Money

Cramer: Chipotle, McDonald’s telegraph food trend

Cramer's view: McDonald's vs. Chipotle
Cramer's view: McDonald's vs. Chipotle

(Click for video linked to a searchable transcript of this Mad Money segment)

Cramer's investing regimen demands sifting through earnings each and every quarter. The information contained in all the metrics not only informs his outlook on the company, it can also shape his views on an industry, too.

And after sifting through recent earnings from McDonald's and Chipotle, Cramer said, "They are making statement about what people want to eat and, as a result, what investors should want to buy."

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Looking at the results, as comparable sales in its struggling U.S. business fell for the third straight quarter and sales in Europe declined for the first time in four quarters.

Conversely, and said comparable restaurant sales increased 17.3 percent.

Because McDonald's is largely a seller of inexpensive hamburgers and fries, while Chipotle is a higher priced burrito maker focused on food with integrity, "These results say to me that customers are rebelling against (McDonald's) inexpensive non-natural and non-organic (foods) even if it is cheap and relatively tasty." Instead, they're willing to pay up for Chipotle.

Always looking to confirm an outlook, Cramer thinks results from Coca-Cola, which missed estimates as North America growth stalled, are sending a similar message. "It says to me that people don't want as much processed sugar water," Cramer noted, although it, too, may taste great.

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All told, Cramer thinks it's reasonable to conclude that healthy eating isn't just a fad, it's a permanent shift, and, as a result, the long-term trend should inform future investments.

"Although I believe that the stocks of Coca-Cola and McDonald's can rally from restructuring and dividend boosts and the like, I would rather be in stocks with organic growth. And while I never recommend chasing a stock that's popped 12 percent in a single session, over the long-term I think Chipotle will outperform both McDonalds and Coca-Cola, perhaps for many years to come."

Call Cramer: 1-800-743-CNBC

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