Jim Cramer Got These 10 Stocks All Wrong

5. Chipotle Mexican Grill (NYSE:CMG)

Number of Hedge Fund Holders: 83

Chipotle Mexican Grill Inc. (NYSE:CMG), the upscale fast-casual chain known for burritos and its cult following, got Cramer’s vote of confidence ahead of its stock split last year. He emphasized the strength of the business and encouraged buying on post-split weakness at the time.

“Chipotle, I care more about how the company’s doing than the split itself, and the company’s doing incredibly well. I do know that after the split, I wouldn’t be surprised if people got extra shares they say, ‘Oh, I got so much Chipotle, I’ll sell some,’ so I think you could buy some here but in the wake of the actual split, uh, it’ll run up into the split, and then it will probably go down.”

Since then, however, the stock has slipped 13.5%, as elevated valuations and slowing traffic trends weighed on performance.

Nevertheless, Jim Cramer remains optimistic about the restaurant’s prospects. He had this to say on the 26^th of March:

“Chipotle? Alright, so Chipotle, I don’t want to be a weasel here, but it sells at 38 times earnings and that kind of stock is going to take a little bit of heat just because the market’s going to be down off the tariff news. But it is the kind of stock you would buy after the tariff news is digested and it’s, but it is gonna feel like it’s, you’re digesting something that’s real bad tasting.”