Squawk on the Street Cramer's Morning Take: McDonald’s & Starbucks 11/5/25
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Nov 5, 2025 Market trends heat up as McDonald’s slashes prices, igniting a surge in sales and stock performance. Cramer dives into the ADP report, highlighting its implications for the labor market. Lower pricing from companies like Lemonade and Carvana might ease consumer inflation. He also emphasizes that Starbucks should consider reducing cup prices to boost its stock. The discussion navigates through tariffs and pricing strategies, revealing potential market opportunities ahead.
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McDonald's Stands Out Among Peers
- Cramer notes price cuts are not widespread among fast-casual peers like Cava and Chipotle, making McDonald's move notable.
- He links diverse company price actions to potential broader disinflation if one-time tariffs wash through.
Consider Cutting Prices To Spur Demand
- Try lowering menu prices to stimulate demand and improve investor sentiment, as McDonald's did successfully.
- Jim Cramer hopes Starbucks follows suit with a lower cup price to lift its stock above $85–$90.
Price Cuts Can Boost Stocks And CPI
- Jim Cramer observes that companies that lower prices are seeing positive stock reactions and may help drive CPI lower.
- He contrasts McDonald's price cuts with peers that didn't cut, suggesting action matters for consumer stocks.