Jim Cramer: May Be Time to 'Dip Feet' Back in Chipotle (CMG) Stock

A survey showing people are not as concerned about food safety as they once were, may help Chipotle Mexican Grill (CMG) stock bounce back, Jim Cramer said on CNBC today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- A William Blair survey released on Wednesday shows that Americans are less concerned about food safety than they once were, TheStreet's Jim Cramer reported on CNBC's "Squawk on the Street" Wednesday.

"It looks like for the first time, food safety concerns are not as top of mind as they were, particularly in the northeast," Cramer said.

The William Blair analysis of the survey suggests that this result is a positive for shares of Chipotle Mexican Grill (CMG) - Get Report as the food chain giant continues to work on bouncing back from its November E. coli scare.

However, the survey result may only point to the start of Chipotle's restoration. "It doesn't start overnight," Cramer noted.

In June, shares of Chipotle dipped below $400 for the first time since July 2013. The stock has since recovered to the $400 range.

"Those that want to dip their feet into Chipotle, I think it's right," he stated.

Cramer does not "typically" take merit in surveys, but this recent one "seems like it has a little more gravitas."

"I've been going to Chipotle the whole time, but maybe that's just because I like the food," he commented.

Shares of Chipotle are rising by 1.93% to $416.22 late this morning.

Separately, TheStreet Ratings rated Chipotle as a "hold" with a score of C.

The primary factors that have impacted this rating are mixed. The company's strongest point has been its very decent return on equity which we feel should persist.

At the same time, however, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.

You can view the full analysis from the report here: CMG

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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