“I think Chipotle can go to a thousand,” Cramer said. “It is a great stock here. That’s the one you want to be in.”
The fast-casual burrito chain has nearly doubled so far this year and is up just under 89% year to date.
Cramer has been bullish on Chipotle for a while now, and said last month that he imagines Wall Street will “anoint” the stock before the end of the year.
But it hasn’t always been smooth sailing for Chipotle. The stock bottomed last year after two food safety scares and a change in leadership. But since then, the company has remodeled its stores, digitized its menu, launched a popular loyalty program, and successfully added new food items.
“If you want technology, you go after Chipotle,” the host said. “They have got a lot of good things in the pipe.”
And the chain’s latest menu addition could help it deliver higher-than-expected results when it reports next month.
SunTrust Robinson analyst Jake Bartlett, who just reiterated his Buy rating on the stock, says there’s been strong demand for Chipotle’s new carne asada. “Carne asada sales appear to be higher as a percentage of sales than we expected,” he wrote in a note from Tuesday.
In fact, SunTrust’s research suggests carne asada is “selling equal to or much more than steak and, in some cases, almost as much as chicken” in some stores.
Piper Jaffray analyst Nicole Miller Regan reiterated her Overweight rating of the stock recently and said of Chipotle, “Despite difficult comparisons, valuation sensitivity, and what we see as a myopic view of Chipotle’s post recovery growth profile (i.e. essentially the Bear thesis) we urge investors to buy Chipotle shares.”
Miller Regan believes Chipotle can earn $30 per share in 2021, which is $5 above her previous estimate. She expects Chipotle “shares to continue to work higher during its current near-term recovery phase followed by the potential long-term compounding impact of growth and potentially international franchising. As the recovery unfolds, meaningful leverage exists.”