This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: The James Dean Stocks

Stocks in this article: CMGNFLX

NEW YORK (Real Money) -- If you give 'em what they want, you can raise the price and they want more! That's the takeaway of two different earnings reports last night: Chipotle (CMG) and Netflix (NFLX). And it's a particularly glorious one at that.

First of all, Chipotle put up some numbers that made all other publicly traded restaurants look like they are serving rancid chicken and beef. These numbers -- comp sales up 17% when we were looking for 10% -- are insanely fabulous and much of it wasn't because of price.

It was because of throughput. It was because of skillful management that has enabled Chipotle to handle crowd management. Oh, and let's be sure, that's what it is: crowd management. If you can put through eight more transactions during the peak lunch and dinner hours, you can get a number that is well in excess of what anyone is looking for.

Herb Greenberg: Allergan's Dilemma

The End of Quantitative Easing and What It Means for Commodities

JetBlue, With Expectations Low, Could Face Changes

That's how you get to $3.50 a share in earnings instead of the Street estimate of $3.09. That's how you get to a comparable-sales number that is literally the second best ever, the first being eight years ago when the company had fewer than a third the stores it has now and the stores were making one-third less than they do.

These were mesmerizing numbers, done without specials and with a consistency that continues in July despite some pretty hefty price increases to cover increasing costs of pretty much everything they serve.

How did they do it? The bean counters won't want to hear this, but they did it by relying on Food with Integrity. They really don't do much advertising other than the online shorts that talk about how they are different. It's resonating.

The group that's really come on strong is teenage males. How fitting is it that teenage males used to live at McDonald's (MCD). I bet many of the teenage males eating at Chipotle these days wouldn't be caught dead at a McDonald's. They would be embarrassed because it is what their know-nothing, moronic, pre-Web parents ate. Eating at Chipotle is a statement, a statement that says, "Listen up food chain, we are on to you and we have had it with you."

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs