Jim Cramer says he likes these 3 restaurant stocks

CNBC’s Jim Cramer on Thursday offered investors a list of his favorite stocks in the restaurant industry that he believes will do well as the economy eventually stabilizes.

“Maybe the economy’s normalizing here, or at least the Fed chief thinks it could be soon to normalize. And in a normal environment, stock picking is much more about identifying the best players in any given industry, rather than just jumping from sector to sector,” he said. 

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His comments come after Federal Reserve Chair Jerome Powell said Wednesday that the central bank could ease back its aggressive pace of interest rates as soon as December, setting off a market rally.

Cramer explained that he chose to examine restaurants because investors can easily understand their “totally consumer-facing” business operations.

Here are his favorite restaurant stocks:

Growth stock pick: Chipotle Mexican Grill

Cramer praised the burrito chain for its mobile ordering technology and brand loyalty, which boosts its pricing power.

“What really gets me excited about Chipotle is simple: As their costs come down — and that’s happening now that the Fed’s winning its war on inflation — their earnings can soar higher,” he said.

Defense stock pick: McDonald’s

‘Special’ situation pick: Restaurant Brands International

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