El Cramer'o Gusta Chipotle Mexican Grills!
On the second feature stock on CNBC's MAD MONEY tonight, Cramer went over Chipotle Mexican Grill, Inc. (CMG). Cramer thinks pizza is out, look at California Pizza Kitchen (CPKI) down 10% at $28.35 after-hours from its earnings report, and fast Mexican food is in. Cramer said he is also a food critic, but the food critic and the investor can come together for burrito investing. Cramer said he was in denial that pizza sales were down and he thought it was maybe just a Domino's (DPZ) issue, but he was wrong. Domino's had had same store sales declines since Q4 of last year. Before Cramer even mentioned CMG the stock gapped over 2% to $58.00 in after-hours trading on NYSE/Archipelago trading. Cramer thinks burritos are the new pizza as far as popularity. He also said Papa John's (PZZA) was one people are leaving for "Taco John's." Cramer also noted Jack-in-the-Box (JBX) for its Qdoba Mexican Grills (3% of JBX business), which he said that the place wasn't bad. Cramer said he is hesitant to be a BUY BUY BUY, but it has come down a bit. Cramer said that salsa is now the number 1 condiment in America. Cramer said you may never replace pizza in America, but investors need to be in burritos as people are eating more Mexican food than pizza. CMG & JBX are trumping PZZA & DPZ.
Jon C. Ogg
Jon C. Ogg