Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report shares jumped on Wednesday after the restaurant chain posted stronger-than-expected second-quarter earnings and raised its forecast for the remainder of the year, results that TheStreet’s Jim Cramer called “stunning.”
Chipotle shares were up nearly 8% in early trading after the company reported per-share earnings of $6.60, well above the per-share earnings of 29 cents it posted last year and a dime ahead of the $6.50 a share forecast by analysts.
The company also said it expects comparable restaurant sales growth in the low- to mid-double digits in the third quarter.
“Chipotle was stunning last night, just stunning,” TheStreet’s Jim Cramer wrote on Twitter.
That comment followed a broader assessment from Cramer on Tuesday that Chipotle and other companies that beat earnings expectations in the current environment are difficult to keep down.
“When a company delivers surprise earnings to the upside, it's mighty hard to keep that stock down," Cramer told viewers during his daily "Mad Money" recap.
Real Money contributor Stephen (Sarge) Guilfoyle had a different take on Chipotle, noting that while he really likes burritos, he is “flat CMG” as the market continues to be price for a best-case-scenario post-pandemic rebound.
"The U.S. equity marketplace had become the most beautiful home on the most beautiful block in the most beautiful neighborhood, but built on a foundation of matchsticks," Guilfoyle wrote.
"Though I really, really like burritos, I am flat CMG.”
At last check, shares of Chipotle were up 7.65% at $1,696.25. The stock is up 28.59% year to date.
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.