We recently published 10 Stocks Jim Cramer Talked About As He Warned About “Have-Not” Stocks. Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the stocks Jim Cramer recently discussed.
Chipotle Mexican Grill, Inc. (NYSE:CMG)’s shares dipped by 13% after the firm’s second quarter earnings. The results saw the firm’s $3.06 billion revenue miss analyst estimates of $3.11 billion while its $0.33 EPS met the estimates. Chipotle Mexican Grill, Inc. (NYSE:CMG) has consistently struggled with lower sales, and here’s what Cramer believes went wrong this time:
“Chipotle, another one, bumping up against a too expensive price. People are not perceiving the value like I said. A wealthy person doesn’t think twice about this, a person on a stretch budget, like the person who can’t pay for the braces, is saying hey, I’m gonna go for the five dollar McDonald’s burger. So it’s just worth keeping in mind the two different economies that we have right now, very, very different.”
Previously, the CNBC TV host discussed Chipotle Mexican Grill, Inc. (NYSE:CMG) in detail:
“Everything’s changed since COVID, but we just keep acting like it hasn’t. We always seem surprised when we hear that higher prices are hurting demand and a company isn’t doing that well. That’s how I felt about the plummeting price of Chipotle stock. I was checking it out after talking with Brian Niccol, the current CEO of Starbucks, who came over from Chipotle about a year ago. When Brian left, the stock was at 56. The S&P 500 was at 5,648. Now the stock’s at 43 and change. Well, the S&P’s at 6,362. Well, what’s happened here? It’s not the in-store experience. Chipotle’s the same place it was always. It’s just gotten a lot more expensive…
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gdolgikh / 123RF Stock Photo
Look, I’m not trying to pick on Chipotle, and I recognize those prices are all over the map given their crowdsourced nature. So many restaurants, so many kinds of stores, so many homes, so much entertainment… the same problem. But to not relate Chipotle’s stock price to what’s happening with the prices, well, that’s just fanciful. The consumer’s just paying a lot more, and nobody likes that.”
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Disclosure: None. This article is originally published at Insider Monkey.