Cramer Says Chipotle is Gonna Be Great Again, Emphatically Believes History is on Bill Ackman’s Side

During tonight’s maddening money episode, Jimbo delved into the ongoing saga at Chipotle and paid homage to billionaire/failed hedge fund manager, Bill ‘Montauk’ Ackman. He cited other companies who’ve endured shit being found in their food, even killing kids along the way, only to come racing back stronger than ever. Jim believes investors are about to partake in a great sea change in Chipotle’s fortunes. Jim believes the troubled times at CMG, enduring cataclysmic 25-30% drops in sales, are almost behind them.

As such, he believes Ackman is correct and the shares are a buy at $400.

According to Exodus, both revenues and earnings paint a very grim visual for persons looking to invest in a healthy company.

Valuation wise, the company is priced for the sewers, at 2.7x sales, matching the likes of DPZ, YUM, ZOES and QSR. In other words, CMG isn’t cheap, but instead trades in line with its peers. That is not opinion, but fact. The one notable difference between, say ZOES and CMG, is the former is growing revenues at 25-30% per annum, while CMG is mired in shit (literally)–down by 25%.

The best performing restaurant stocks in the space, over the past 3 months, have been WING, DPZ, EAT, BDL and JACK. Overall, the industry has done nothing, down by 0.59% over the past 3 months.

Participate in my Twitter poll.

Do you have an issue with eating at Chipotle?

Do you have an issue with eating at Chipotle?

— The_Real_Fly (@The_Real_Fly) September 7, 2016