Chipotle (CMG) is Still Grilling the Competition - Cramer
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Price: $3,077.32 +5.14%
Rating Summary:
31 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
31 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Chipotle Mexican Grill (NYSE: CMG) -- which you probably didn't anticipate wanting for lunch ahead of this article -- is sizzling. Stock swami Jim Cramer agrees...
On April 19th, Chipotle posted first-quarter profit of $1.97 per share, compared with Street views expecting $1.91 and comps up 12 percent. Margins were up 220 basis points to 27.4 percent, showing solid cost controls for the Mexican food chain.
Cramer spoke with Chiptole CFO Jack Hartung on Thursday evening's Mad Money. On the comps increase, Hartung said only 4 percent was the direct result of price increases. More so, Chipotle's solid customer base drove the increase. Customers are aiding Chipotle in promoting the company via social media outlets like Facebook and Twitter.
Hartung also noted 98 percent of managers come from crew members, meaning there is a strong "people culture" there.
Investors also are focusing on Chipotle's Shophouse chain. Hartung cautioned the roll-out wouldn't be a rapid one, with Chipotle aiming to put out a solid product with well-informed and trained staff before anything else. Chipotle will open up the second Shophouse location in Washington DC soon, but Hartung was mute on further plans.
Hartung concluded by saying investors and analysts should look more to Chipotle's longer-term prospects instead of expecting rapid short-term gains. Cramer agreed, advising folks to stop worrying about near-term issues.
Shares of Chipotle are indicated 0.5 percent higher Friday morning.
On April 19th, Chipotle posted first-quarter profit of $1.97 per share, compared with Street views expecting $1.91 and comps up 12 percent. Margins were up 220 basis points to 27.4 percent, showing solid cost controls for the Mexican food chain.
Cramer spoke with Chiptole CFO Jack Hartung on Thursday evening's Mad Money. On the comps increase, Hartung said only 4 percent was the direct result of price increases. More so, Chipotle's solid customer base drove the increase. Customers are aiding Chipotle in promoting the company via social media outlets like Facebook and Twitter.
Hartung also noted 98 percent of managers come from crew members, meaning there is a strong "people culture" there.
Investors also are focusing on Chipotle's Shophouse chain. Hartung cautioned the roll-out wouldn't be a rapid one, with Chipotle aiming to put out a solid product with well-informed and trained staff before anything else. Chipotle will open up the second Shophouse location in Washington DC soon, but Hartung was mute on further plans.
Hartung concluded by saying investors and analysts should look more to Chipotle's longer-term prospects instead of expecting rapid short-term gains. Cramer agreed, advising folks to stop worrying about near-term issues.
Shares of Chipotle are indicated 0.5 percent higher Friday morning.
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