McDonald's nearing a bottom: Cramer

Cramer's Mad Dash: MCD challenges

Though McDonald's stock has ticked lower on weak summer sales, shares of the fast food giant could soon hit a bottom, CNBC's Jim Cramer said Tuesday.

"[The] dividend is going to trump sales. This stock is going to find a bottom here," Cramer said on "Squawk on the Street." August sales were down roughly 4 percent while its stock currently sports a 3.5 percent dividend yield, he noted.

That juicy dividend yield is not the only reason investors held on to the burger joint's stock either, Cramer said.

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"McDonald's has a dividend and people keep feeling that [CEO Don] Thompson is going to wake up one day and say, 'You know what, we've got a balance sheet that's going to allow us to do a lot of things,'" Cramer said. "So people don't sell McDonald's the stock the way you would expect given the fact the sales were so horrendous."

Still, that's not to say McDonald's doesn't face challenges. The company said on Tuesday sales fell in every region in August, hurt by a recent meat scandal in China and higher competition in the United States.

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To Cramer, McDonald's struggles stem from its lack of natural and organic food offerings.

"Younger people directly see a cause and effect between a lot of things that they put in their body and getting sick," he said. "Older people don't understand this and just think, 'Will you give me a break? McDonald's is inexpensive. People will go there.' People don't regard McDonald's as inexpensive versus having to pay big health care."

—By CNBC's Drew Sandholm.

DISCLOSURE: When this story was published, Cramer's charitable trust did not own McDonald's.