Chipotle shares managed to pop double digits Wednesday because of the restaurant chain’s culture, CNBC’s Jim Cramer said.
“This company has an extraordinary culture of customer-centric innovation, and that culture has been turbocharged since they hired Brian Nicoll as CEO when Chipotle’s stock was languishing the $200s after a series of health scares,” the “Mad Money” host said.
The comments come after the stock closed at $1,755.99, jumping more than 11% after Chipotle reported a big earnings beat in the second quarter on revenues that topped pre-pandemic levels.
The surge came alongside gains in major U.S. stock averages as Wall Street continued to bounce back from a big plunge on Monday.
Cramer highlighted how the company embraced technology to boost digital ordering, leaned on food delivery and capitalized on their modernized drive-thru lanes called “Chipotlane” amid Covid-19 lockdowns to sustain the business.
“We always hear about these executives who say a crisis is a terrible thing to waste. Most of the time they’re just blowing smoke. Not Chipotle. Chipotle delivered,” Cramer said.
“The most important thing is that, unlike nearly every company I follow, Chipotle held on to its digital gains after the great re-opening.”
Chipotle posted $1.89 billion of revenue last quarter, up nearly 39% from a year ago and about 32% higher than the same quarter in 2019.
The company also doubled its second-quarter profit from 2019, reporting $188 million on the bottom line compared to $91 million two years ago.
Shares of Chipotle are up more than 26% after setting a record close.