Chipotle stocks hit double digits on Wednesday due to the restaurant chain’s culture, CNBC’s Jim Cramer said.
“This company has an exceptional culture of customer-centric innovation, and that culture has accelerated since they hired Brian Nicoll as CEO when Chipotle’s stock fell $ 200 after a series of health fears,” said the host of ” Mad Money “.
The comments come after the stock closed at $ 1,755.99, up more than 11% after Chipotle reported a huge drop in earnings on sales in the second quarter that surpassed pre-pandemic levels.
The spike was accompanied by gains in average US stocks as Wall Street continued to rebound from a major slump on Monday.
Cramer highlighted how the company used technology to promote digital ordering, relied on grocery delivery, and took advantage of its upgraded drive-through lanes called “Chipotlane” amid Covid-19 lockdowns to keep business going.
“We always hear from these executives who say a crisis is a horrible thing to waste. Most of the time, they just blow smoke. Not Chipotle. Chipotle delivered,” Cramer said.
“Most importantly, unlike almost every company I follow, Chipotle held onto its digital profits after the big reopening.”
Chipotle had revenue of $ 1.89 billion in the most recent quarter, nearly 39% more than last year and about 32% more than in the same quarter of 2019.
The company also doubled its earnings in the second quarter of 2019, bottoming out $ 188 million from $ 91 million two years ago.
Chipotle’s shares are up more than 26% after a record close.