"This is, I think, within 10% of a bottom here," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment, as he urged investors to look beyond the restaurant chain's lousy quarter. "People are going to come back to it and, therefore, this stock goes higher."
Chipotle has had a challenging few months, with the Centers for Disease Control and Prevention recently concluding its investigation into E. coli incidents associated with the restaurant chain.
Cramer urged investors not to make too much of a Department of Justice probe into a norovirus outbreak in a Chipotle restaurant in California. "People get scared about a Justice Department investigation. They're going to look back and say, "When did that end? What was that all about?" Cramer said.
The company will launch an aggressive marketing and promotional campaign next week to win back customers. Chipotle plans to spend $50 million in the first quarter for the marketing campaign, which will continue through the summer.
"I think people will be headed to Chipotle five months from now. These guys have more cash than they know what to do with because they are just buying hundreds and hundreds of millions of dollars of stock," Cramer said.
"I'm gonna go there," he said. "Will someone get me a burrito?"
At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.