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Cramer: Coca-Cola is recognizing its shortcomings

Cramer on KO

Coca-Cola is on the right track after edging Wall Street's quarterly expectations, according to Jim Cramer.

"They're feeling the heat," Cramer said on CNBC's "Squawk on the Street " Tuesday. "I kind of liked what I saw. I like the fact that they're no longer saying 'were the best.'"

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Cramer made his remarks after the Atlanta-based beverage giant earlier posted fourth-quarter earnings of 44 cents per share on $10.87 billion in revenue. The Street expected Coca-Cola to report earnings of 42 cents a share on revenue of $10.76 billion, according to Thomson Reuters I/B/E/S. The company's sales in North America increased by 2 percent, marking the first rise in four quarters.

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Other companies, like McDonald's paid a hefty price for not recognizing their shortcomings, Cramer added. "I think one of the problems under the [Don] Thompson regime at McDonald's is that there was [this sense] of 'Hey, we're still pretty good; don't worry about it,'" he said. "That's no longer the way it works."

The fast food company posted quarterly earnings of $1.13 per share on revenue of $6.57 billion last month. Analysts expected McDonald's to report earnings of $1.22 per share on revenue of $6.68 billion, according to a consensus estimate from Thomson Reuters.

—Reuters contributed to this report.

Disclosure: When this story was published, Cramer's trust owned McDonald's stock.