Was Jim Cramer Right About These 10 Stocks?

7. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Number of Hedge Fund Holders: 83

In that older episode, a viewer with a small position in Chipotle Mexican Grill, Inc. (NYSE:CMG) asked whether to add more. Cramer remained very positive on the company’s fundamentals but advised patience due to the elevated price:

“I think Chipotle is fantastic. I have to fight you on buying more here because it’s had — it is so close to its high. But just hold it and don’t make any sales — because you know it’s going to split by the way in June. You’re going to get a lot of stock. People are going to get excited about that. We might even actually trim some a little when it gets to that. But I think Chipotle fundamentals are just fantastic.”

Despite strong fundamentals, the stock dropped 20.75%, proving this recommendation missed the mark.

Chipotle Mexican Grill Inc. (NYSE:CMG) is a fast-casual restaurant chain specializing in burritos, bowls, and tacos made from responsibly sourced ingredients. Discussing the company’s recent earnings, Cramer said the following:

“[CMG and consumer headwinds] When I listened to that I said okay now I know why Kroger goes up every day. Now I know why Costco’s strong. There, Scott Boatwright had a very, this was the Chipotle call, it was a very straightforward call basically just saying, they didn’t mention the actual price of different things, but people would rather just have a couple of meals at home. Where it’s just cheaper.”

“Remember McDonalds came out with a $5 burger and their numbers spiked? Well, you have to address, if I were Chipotle right now, I’d be thinking, okay, I gotta come up with a limited-time only offer that is, that’s cheaper. Now Scott, to his credit said, listen we gotta have people smile more. Okay. I like smiles.”