Chipotle (CMG) “Stopped Executing Well,” Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed Including His Palantir Deep Dive. Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the stocks Jim Cramer recently discussed.

Chipotle Mexican Grill, Inc. (NYSE:CMG), the fast casual restaurant chain, has been in the red lately as its shares have lost 47% year-to-date. The shares dipped by as much as 19% after the firm’s third-quarter earnings report last week. Cramer has regularly discussed Chipotle Mexican Grill, Inc. (NYSE:CMG) in his morning appearances and in Mad Money. After the earnings report, he countered the notion that the firm was suffering from broader sluggishness in the economy since he was not hearing a similar narrative from other restaurant companies, such as Brinker. As a result, Cramer believes that Chipotle Mexican Grill, Inc. (NYSE:CMG)’s woes are specific to the firm. In this appearance, he commented that the problem appeared to lie with the firm’s execution:

Copyright: bhofack2 / 123RF Stock Photo

“Well Chipotle, they stopped executing well. They stopped executing well.”

In his Mad Money appearance on October 30th, Cramer discussed Chipotle Mexican Grill, Inc. (NYSE:CMG)’s history:

“Consider the case of Chipotle, which admittedly needs another turnaround after today’s beatdown. But I’m talking about the old Chipotle. This company fell on hard times in 2015… Chipotle brought in Brian Niccol, a rising star from Taco Bell… Installing him as CEO at the time, I don’t know, I was skeptical, putting someone in who helped push a burrito with 80 ingredients versus one with just eight, I mean, really? Was he the right guy? Well, the answer was absolutely, you bet it was. About a year later, the ship was completely righted, and the stock rallied all the way to $56. That’s right. $5 when he came in to $56 when Starbucks poached him last year.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.