Chipotle Mexican Grill, Inc. (CMG): Jim Gramer Agrees That 3% Sales Growth Could Lead To 20% Upside

We recently published 10 Stocks Jim Cramer Discussed As He Asserted He Could Beat The Government’s Numbers. Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the stocks Jim Cramer recently discussed.

Chipotle Mexican Grill, Inc. (NYSE:CMG)’s shares have lost 27% year-to-date, primarily on the back of a massive 21.5% dip between late July and early August. The stock fell after the firm’s second quarter earnings report saw it cut its full year same-store sales forecast. Investors weren’t impressed by the fact that Chipotle Mexican Grill, Inc. (NYSE:CMG)’s $3.06 billion in Q2 revenue also missed analyst estimates of $3.11 billion. In his earlier remarks about the firm, Cramer has praised the firm’s CEO and commented that he should come on air to clear the air. This time, he discussed Piper Sandler upgrading Chipotle Mexican Grill, Inc. (NYSE:CMG)’s shares:

“[On analyst upgrade] Okay, so Chipotle, that was just to me, a total bottom fish. We need to see something that tells me that there really is a major turn because the numbers have not been great.

“[On 20% upside if they can grow comparable sales by 3% over the next couple of years] Totally true. Because 5% would get them to 60 at this point. And by the way they’re basket’s not that inflated by, remember I was telling you about the BLS and how they’re using non-traditional sources for some of their things.”

Copyright: dolgachov / 123RF Stock Photo

Previously, Cramer discussed Chipotle Mexican Grill, Inc. (NYSE:CMG)’s shares and remarked how the dip was disturbing him:

“I am troubled. I’m troubled by Chipotle. It hit a 52-week low today at 41… I think that Scott Boatwright should come on and we suss out what’s going on here because I don’t like the action, and I don’t like what I’m hearing. And yet I know that this is a place that I still like to eat, so I don’t want to give up on it because I still like the product. Let’s do some deep, let’s do a deep dive on this one.”

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