Jim Cramer reacts to Chipotle’s big wins: “Chipotle delivered”



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Chipotle shares managed to post double-digit numbers on Wednesday due to the culture of the restaurant chain, CNBC’s Jim Cramer said.

“This company has an extraordinary culture of customer-centric innovation, and that culture has been supercharged since she hired Brian Nicoll as CEO when Chipotle stocks were languishing at $ 200 after a series of health issues.” said the host of “Mad Money”.

The comments come after the stock closed at $ 1,755.99, jumping more than 11% after Chipotle reported a sharp second quarter profit increase on earnings exceeding pre-pandemic levels.

The rise was accompanied by gains in major US stock averages as Wall Street continued to rebound from a large drop on Monday.

Cramer highlighted how the company adopted technology to drive digital controls, relied on food delivery, and capitalized on its modernized drive-thru lanes called “Chipotlane” amid Covid-19 blockages for support the business.

“We always hear from those executives who say a crisis is a terrible thing to lose. Most of the time, they’re just blowing smoke. Not Chipotle. Chipotle delivered,” Cramer said.

“Most importantly, unlike almost every company that I am, Chipotle held onto its digital gains after the grand reopening.”

Chipotle posted revenue of $ 1.89 billion in the last quarter, up almost 39% from a year ago and about 32% more than in the same quarter in 2019.

The company also doubled its second quarter profit from 2019, with net income of $ 188 million from $ 91 million two years ago.

Chipotle shares rose more than 26% after setting a closing record.

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