Jim Cramer, a well-known investor and host of “Mad Money” on CNBC, continuously faces the wrath of investors who believe he has a reverse Midas touch.
Most times when Cramer mentions he likes a stock, the price seems to go down faster than a lead balloon.
Though, lo and behold, Cramer proved his critics wrong with a call that turned out to be right.
What Happened: On April 17, Cramer on his “Mad Dash” segment was discussing Chipotle Mexican Grill, Inc. (NYSE:CMG), ahead of its earnings report and while the stock was trading around the $1,738 level.
“[Chipotle] is back to having menu items that drive their sales up,” Cramer said, “and it’s an exciting time because look at that stock — it’s finally breaking out after multi-year consolidation.”
“I like it to go to $2,000,” the market pundit said.
Usually, when Cramer makes a call like that, the stock would go to $1,500 or so — not this time.
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Why It Matters: Chipotle on Tuesday reported a 17.2% year-over-year increase in revenues to $2.37 billion, and issued quarterly earnings of $10.50 per share, beating Street estimates of $8.92 per share.
Here are the earnings, in-depth.
Shares moderately climbed during the after-hours session on Tuesday, but the stock took center stage on Wednesday at market open, climbing nearly 14% intraday to trade at $2,032.39 at the time of writing.
Here’s what analysts think.
We hope Cramer had a position.
As for guidance, management said the second quarter and full-year comparable restaurant sales growth are expected to reach mid- to high-single-digit figures. Further, the company plans to open 255 to 285 new branches, including 10 to 15 relocated stores that will feature Chipotlane.
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