I am going to buy another 200 shares of McDonald's (MCD) this morning given the 1.5% decline in the shares today. I think the company's upcoming beverage offering is going to be a big part of the overall growth to the company for the next several years. The company wants to be the beverage destination of choice, not just with specialty coffee, but with iced teas, iced coffees, noncarbonated drinks, energy drinks, etc. Given its drive- thru convenience, product innovation and marketing strength, I think the company can become a big player in this segment and believe earnings estimates will go higher over time. Its international business is still strong and will continue to focus on improving customer experience and its drive-thru operations.
At $55, the stock is trading at 15 times 2009 earnings, which are projected to grow 12% for the next several years. And I think the earnings are conservative. The 2.6% dividend is also a plus.
After my purchase, I will own 2.26% in the fund.
Regards,
Jim Cramer
DISCLOSURE: At the time of publication, Cramer was long MCD.
Send email to james.cramer@thestreet.com.