Jim Cramer Says He Doesn’t See “Clear Roadmap for Growth” in Chipotle

Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the stocks Jim Cramer shared his opinions on. A caller asked what catalyst might drive the stock higher: an improved consumer environment or a specific update in the upcoming earnings report. Cramer replied:

“Well, I think it’s a combination… and it’s two things. One is that we absolutely have to have lower commodity prices because I think that a lot of their commodities, particularly beef, are really, really hurting. And then the second that you need is you got to have a clear roadmap for growth. And right now, I don’t see that. It has to happen or else people are not going to buy the stock.”

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Chipotle Mexican Grill, Inc. (NYSE:CMG) operates restaurants and it burritos, bowls, tacos, salads, and related menu items, along with delivery through its app and website. When a caller asked for Cramer’s advice on the stock during the September 10 episode, he replied:

“Oh boy, alright. There’s a lot of fundamental stories going on in the restaurant industry that is making it so it’s hard to buy any of these, and a lot has to do with the price of beef. I keep thinking that cattle is going to break down. That is a big cost that they have, and you know what? I thought it was going to break. I talked to my friend Carley Garner; she felt that it’s going to break, but what happened? This thing, which goes into so much of Chipotle’s food, is just no quit. So until cattle really breaks, I’m going to have to say, let’s just keep it on the radar screen.”

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