Chipotle Mexican Grill, Inc. (NYSE:CMG) stands out among the significant stocks Jim Cramer discussed for Q3. Focusing on potential comeback stories, Cramer highlighted this stock and remarked:
“When reviewing the major losers of the quarter, a few names leap out as candidates for recovery. Among these, Chipotle stands out as the strongest performer despite its recent struggles, which resonate with many in the restaurant sector. The recent performance numbers aren’t impressive, but this is a company known for rebounding well once management implements the right strategies. After a 30% drop last quarter, Chipotle presents itself as a viable candidate for a turnaround.”
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Chipotle Mexican Grill, Inc. (NYSE:CMG) operates a variety of dining establishments that offer burritos, bowls, tacos, quesadillas, salads, and beverages. Cramer referred to the company during the episode aired on September 10 and stated:
“There are numerous fundamental shifts impacting the restaurant industry, which complicates decisions regarding investments in these companies, much of which revolves around beef prices. I keep anticipating a decrease in cattle prices. This cost is significant for them, and despite my predictions, they’ve remained stubbornly high. I consulted my friend Carley Garner, who also believed a drop was imminent, yet here we are—the prices of cattle, vital for many of Chipotle’s offerings, show no signs of letting up. Until we see a significant decline in cattle prices, I think we need to cautiously keep Chipotle on our watchlist.”
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Disclosure: None. This article was originally published at Insider Monkey.
