Jim Cramer said he expects Chipotle Mexican Grill to bounce off its recent level, telling a caller on Mad Money that the stock has been at this price before and he thinks it will do so again. The comments came as the company reported quarterly revenue of $3.3 billion, up 9.3% year-over-year and ahead of consensus, with comparable restaurant sales up 2.2% on a 1% rise in transaction volume and a 1.2% increase in average check size. Digital sales accounted for 38.3% of total food and beverage revenue, and the company opened 100 new restaurants during the quarter, including 80 with the Chipotlane drive-thru format. Restaurant-level operating margins stood at 25.2%, compressed by wage inflation, higher utility expenses and expanded marketing costs, while management targets at least 7,000 restaurants across North America. Insider Monkey data showed 63 hedge funds held the stock at the end of the second quarter, down from 68, with Arrowstreet Capital the largest tracked holder after raising its position 29% to 21.24 million shares, and short interest at 3.6% of the public float.
Chipotle Mexican Grill IncQuarterly revenue of $3.3B rose 9.3% YoY and beat consensus, with restaurant-level margins at 25.2%.
