This Day On The Street
Continue to site
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

Jim Cramer's Take on El Pollo Loco's (LOCO) IPO, Chipotle (CMG) Comparisons

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says El Pollo Loco (LOCO - Get Report) shares climbed higher Monday, which indicates the new pattern with IPOs. The same situation occurred with (JD - Get Report) and GoPro (GPRO - Get Report), which went public, immediately went up and then rose even more on their second day of trading.

Some investors think this has to be a top, but Cramer points to the prospectus and says El Pollo Loco is doing quite well and has solid numbers. The "crazy chicken" even has comparable sales stores somewhat like Chipotle Mexican Grill (CMG - Get Report) and an average unit volume better than Chipotle when that company went public in 2006.

Investors are using Chipotle's 50 multiple and saying El Pollo Loco could earn $1, so they are buying it up to $50. But Cramer says what really matters is the deal was small, as a sliver of the stock was for sale, and all that's happening is a handful of institutions are trying to get their full positions in the stock.

Must Watch: Jim Cramer: El Pollo Loco Shares Still Have Room to Move Higher

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Cramer likes Chipotle as a more seasoned operator and wishes it would do a 7-for-1 split, but he encourages people not to assume that stocks such as El Pollo Loco have reached a top because the market doesn't work that way. He says the market does better when there is an overwhelming supply, earnings are bad and interest rates go sky high, which is not the case at the moment.

LOCO Price Chart LOCO Price data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CMG $435.25 0.45%
GPRO $10.56 -7.40%
JD $24.84 2.60%
LOCO $13.16 -1.90%
AAPL $93.21 -0.44%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs