Cramer said Chipotle is likely fairly valued at its present 34 times earnings. He said a Panera-style multiple of 25 would be a floor for Chipotle, while Whole Foods would likely be a new ceiling. But with Yum Brands (YUM) citing a 13% rise in sales at low-end Taco Bell, the trade-down play is clearly happening, said Cramer, which means Chipotle shouldn't be owned until it hits 30 times earnings, or $270 a share.
Chipotle isn't the same company we knew last week, Cramer concluded, which is why we must now wait for its valuation to come back into line.
Here's what Cramer had to say about callers' stocks during the "Lightning Round":
Thermo Fisher Scientific (TMO): "I like this business and I think it's inexpensive. I want to buy it."Frontier Communications (FTR): "No, no, no. I've gone back to CenturyLink (CTL)." Hess (HES): "Too poorly managed. Sell, sell, sell. I do like the oils though." Netflix (NFLX): "That is the hardest stock in the world. I don't know what they will do next." Monster Beverage (MNST): "I think that business is good but no one wants to pay that multiple. "