Business

Jim Cramer reacts to Chipotle’s massive win: “Chipotle delivered”

Chipotle stocks hit double digits on Wednesday due to the restaurant chain’s culture, CNBC’s Jim Cramer said.

“This company has an exceptional culture of customer-centric innovation, and that culture has been accelerating since they hired Brian Nicoll as CEO when Chipotle’s stock fell $ 200 after a series of health fears,” said the host of ” Mad Money “.

The comments come after the stock closed at $ 1,755.99, up more than 11% after Chipotle reported a huge drop in earnings on sales in the second quarter that surpassed pre-pandemic levels.

The spike was accompanied by gains in average US stocks as Wall Street continued to rebound from a major slump on Monday.

Cramer highlighted how the company used technology to promote digital ordering, relied on grocery delivery, and took advantage of its upgraded drive-through lanes called “Chipotlane” amid Covid-19 lockdowns to keep business going.

“We always hear from these executives who say a crisis is a horrible thing to waste. Most of the time, they just blow smoke. Not Chipotle. Chipotle delivered,” Cramer said.

“Most importantly, unlike almost every company I follow, Chipotle held onto its digital profits after the big reopening.”

Chipotle posted revenue of $ 1.89 billion in the most recent quarter, nearly 39% more than last year and about 32% more than in the same quarter of 2019.

The company also doubled its earnings in the second quarter of 2019, bottoming out $ 188 million from $ 91 million two years ago.

Chipotle’s shares are up more than 26% after a record close.

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