TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer called Chipotle's (CMG - Get Report) downgrade by Bank of America "brutal."

He said the recent video of a rat roaming one of its restaurants "really hurt them."

Bank of America pointed to Chipotle's high labor costs. But Cramer also said McDonald's (MCD - Get Report) has high labor costs and customers aren't shying away from them. 

Chipotle was downgraded by Bank of America analysts on Wednesday, citing increased labor costs. Chipotle shares are down 14.5% since the start of the year. 

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