Jim Cramer Says "I Think That You Buy Shake Shack at $79 a Share"

Shake Shack Inc. (NYSE:SHAK) is one of the stocks on Jim Cramer’s radar recently. A caller asked about the stock, and here’s what Mad Money’s host had to say:

“Okay, this is such a great question. Now, you have to understand that Rob Lynch is doing a remarkable job, and he’s a great CEO. Here’s the problem: this stock is trading with the price of beef and cattle, went up and up and up. I think the president’s going to try to bring cattle down. I think that means you buy Shake Shack. I think it doesn’t matter where a stock comes from, it matters where it’s going to. I would never bet against Rob Lynch. I think that you buy Shake Shack at $79 a share.”

Shake Shack Inc. (NYSE:SHAK) operates and licenses a chain of restaurants that serve burgers, chicken, hot dogs, fries, shakes, frozen custard, and beverages. Cramer highlighted the company’s top and bottom-line beat during the October 30 episode, as he commented:

“Is the Shack back? Over the past few months, we’ve seen some big pullbacks in the restaurant space, including high-quality operators like Shake Shack, which you know I love. When these guys reported at the end of July, results were a little less than perfect, and the stock plunged from $140 and change to just under $90 as of last night’s close. But this morning, Shake Shack reported a solid quarter with better-than-expected same shack sales, a solid revenue beat, and a 5-cent earnings beat off a 31-cent basis. That’s huge. While the guidance for the current quarter wasn’t necessarily perfect, it was good enough to let the stock rally almost 2% today in a restaurant chain group that is just awful.”

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Disclosure: None. This article is originally published at Insider Monkey.