We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch.In this article, we are going to take a look at where Chipotle Mexican Grill, Inc. (NYSE:CMG) stands against the other stocks featured in Jim Cramer's latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can't stress how important this number is. We have an upcoming Fed meeting and we're now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it's been, then we're going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I'd say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A chef plating up a wide variety of dishes for a restaurant chain.
Chipotle Mexican Grill, Inc. (NYSE:CMG) will announce its third-quarter earnings results on October 29. Cramer thinks that the company will do fine despite its CEO leaving.
“Chipotle reports too. Without Brian Niccol’s move in to try to fix Starbucks, I think Chipotle will be fine. I don't know if it can break out from the 50s, stock feels trapped, doesn't it? But the announcement of a permanent CEO could work some wonders here.”
Chipotle Mexican Grill (NYSE:CMG) operates a chain of restaurants that specialize in a variety of Mexican-inspired dishes, including burritos, burrito bowls, quesadillas, tacos, and salads. With over 3,400 locations globally, the company has established a significant presence in the fast-casual dining segment.
Following a leadership transition, Scott Boatwright has been appointed as the interim CEO. Having been with the company for seven years as chief operating officer, Boatwright is expected to maintain continuity in the company’s long-term growth strategies. The company aims for an annual growth rate of 8% to 10% moving forward.
On October 2, Chipotle Mexican Grill (NYSE:CMG) continued its international expansion by opening its first restaurant in Dubai, collaborating with Alshaya Group, a prominent international franchise operator. The company's existing international footprint includes 47 locations in Canada, 20 in the United Kingdom, six in France, and two in Germany.
In North America, the company operates more than 3,500 restaurants and plans to ensure that at least 80% of its new locations feature a Chipotlane, a drive-thru pickup lane designed to enhance customer convenience. For 2024, it has set a goal to open between 285 and 315 new restaurants, with an ambitious long-term target of reaching 7,000 locations in North America.
Overall CMG ranks 12th on the list of stocks featured in Jim Cramer's latest game plan. While we acknowledge the potential of CMG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CMG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
