NEW YORK (TheStreet) -- Chipotle Mexican Grill (CMG - Get Report) stock is down 4.67% to $425.10 on heavy trading volume this morning after reporting its first-ever quarterly loss after the market close on Tuesday.
The Mexican-style food chain announced weaker-than-expected first quarter results, as it was negatively impacted by E. coli outbreaks and foodborne illnesses tied to its restaurants late last year.
"Can we just remember that Jack in the Box (BOX) caused many deaths from E. coli and it came back?" TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
Similarly, a food safety scare in China weighed on sales at Yum! Brands's (YUM) KFC a couple years ago, but KFC ultimately rebounded, Cramer pointed out. And an outbreak of E. coli illnesses were linked to Taco Bell restaurants in 2006, and the restaurant chain came back as well.
"[Chipotle] is on par with all of the great massive problems in restaurants, and it's going to make a comeback," Cramer contended.
Also helping Chipotle, the company announced a massive share repurchase program following the E. coli outbreak last year.
"This buyback that they have is extraordinary," Cramer mentioned. "If they keep up at this pace, they'll have bought back a quarter of the company by November."
Chipotle has a loyal customer base as well, with 67% of its diners redeeming the free burrito coupons that the company sent out earlier this year, Cramer noted. He said that he plans to eat at Chipotle later today just to spite everyone.
"A year from now the stock will be up and you'll forget it's this bad," Cramer claimed.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Chipotle's strengths such as its notable return on equity and reasonable valuation levels are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.
You can view the full analysis from the report here: CMG
Recently, 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.