+ 2.58
+ 0.77%
+ 1.62
+ 0.48%
+ 2.86
+ 0.69%

Cramer Highlights Chipotle: 'Incredible Numbers' Lifted Stock To New Highs

February 10, 2021 12:55 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Cramer Highlights Chipotle: 'Incredible Numbers' Lifted Stock To New Highs

Investors looking to take advantage of a future potential market sell-off should take a look at stocks that "got plastered the last time around" and then "bounced right back," Jim Cramer said on Tuesday's "Mad Money."

What Happened: Casual fast-food chain Chipotle Mexican Grill, Inc. (NYSE:CMG) would fall under Cramer's list of stocks that sold off only to bounce back. Shares fell from $1,523 to $1,479 in reaction to its Feb. 2 earnings report despite announcing 11% same-store sales growth in January.

"I don't really care about November and December," Cramer said. "I care about the most recent month because that's how you are supposed to think."

January's results show the company is seeing "incredible numbers" when it is up against pre-COVID numbers when stores were already packed," Cramer said.

Related Link: Chipotle Stock Falls After Q4 Print: Should Investors Buy The Dip?

Why It's Important: Investors that sold the stock after earnings were on the wrong side of the trade as Chipotle's stock hit a fresh all-time high of $1,564.91 on Tuesday. Chalk this up to an irrational reaction investors have when a stock turns red.

"People get scared when they see something go down so they figure there has to be a reason," Cramer said. "They think it's rational."

What's Next: The chain's focus on innovation in how consumers are able to order or get their food means it "barely skipped a beat" throughout the pandemic. As restaurants continue to reopen over the coming months, Chipotle has a potential catalyst in recapturing lost sales from customers that went to enjoy their food indoors.

"I'm betting it has more room to run," Cramer said.

Chipotle's stock traded around $1,532.87 at publication time.

Photo credit: Miosotis Jadevia Wikimedia Commons

Related Articles

Why Cramer Favors Chipotle, Starbucks And Wendy's Post-Coronavirus Shutdown

The unfortunate and sad reality is the U.S. government needs to step in with new rescue options otherwise small businesses will perish and only "big chains" will survive, Jim Cramer said Thursday on "Mad Money." read more

Jim Cramer Thinks Chipotle Stock Can Go 'Much Higher'

Chipotle Mexican Grill, Inc. (NYSE: CMG) is an amazing stock, Jim Cramer said Thursday on CNBC's "Squawk On The Street." People don't like the Chipotle stock enough, Cramer noted, and "There's Chipotle and then there's everybody else." read more

Cowen Upgrades Chipotle, Names It A 'Best Idea' For 2020

PreMarket Prep: Beyond A Random Walk For Earnings Stocks