Cramer says Chipotle is still a buy even as the stock hits an all-time high

Published Mon, Apr 12 202111:34 AM EDTUpdated Mon, Apr 12 20212:19 PM EDT

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

CNBC's Jim Cramer said Monday he believes shares of Chipotle have room to run because the fast-casual restaurant chain is well-positioned to capitalize on the U.S. economy's Covid recovery. Cramer's comments on "Squawk on the Street" came shortly before the stock hit an intraday all-time high of $1,579.52 early in Monday's trading session. It was up slightly early in the afternoon at $1,541. "A lot of states in this country are beginning to scrap the social distancing rules. … The winner here will be the company that had great numbers beforehand, making the most money beforehand, and it's Chipotle," Cramer said. "I think it's still a buy. I've liked these guys since $300, and I'm doubling down right here," the "Mad Money" host added. "I like the price target of $1,800" from Raymond James analysts, who on Monday upgraded Chipotle to outperform from market perform. Cramer noted one tailwind in particular as the economy reopens. Online sales. Digital sales accounted for 46.2% of Chipotle's sales in 2020, compared with 18% of sales in 2019 . "What matters here is they were able to make it so they were pretty much making as much money outside the store as inside, and now the inside of the store is going to open," Cramer said. Chipotle already is encouraged by what it's seeing in markets where dining rooms are back in operation, chief financial officer Jack Hartung told CNBC on Friday. "So, really, we're going to end up being ahead of the game when [the] pandemic is fully behind us. We're very optimistic about where we go from here," Hartung said in a interview on CNBC's "Closing Bell." Another reason why Cramer believes Chipotle's stock can move higher is the impact of the coronavirus pandemic on the restaurant industry broadly. Many smaller establishments have closed , Cramer said, and "it's left the strong to survive." Chipotle will not be the only publicly traded firm to benefit from the changed restaurant landscape, Cramer said. He pointed to Chili's parent Brinker International as another example. "Brinker was kind of a just an OK outfit that is now doing much better because of what they're doing," Cramer said, while noting Texas Roadhouse has also built a "really great" digital presence. "I do think there are some parts of Yum that will benefit because they have a good balance sheet," Cramer added, referring to the owner of Taco Bell and Pizza Hut. "This is about taking share from the companies that went under, and I would have to include Starbucks , too. Starbucks is going to be the long-term winner."

Chipotle restaurant workers fill orders for customers.

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CNBC's Jim Cramer said Monday he believes shares of Chipotle have room to run because the fast-casual restaurant chain is well-positioned to capitalize on the U.S. economy's Covid recovery.

Cramer's comments on "Squawk on the Street" came shortly before the stock hit an intraday all-time high of $1,579.52 early in Monday's trading session. It was up slightly early in the afternoon at $1,541.

"A lot of states in this country are beginning to scrap the social distancing rules. … The winner here will be the company that had great numbers beforehand, making the most money beforehand, and it's Chipotle," Cramer said.

"I think it's still a buy. I've liked these guys since $300, and I'm doubling down right here," the "Mad Money" host added. "I like the price target of $1,800" from Raymond James analysts, who on Monday upgraded Chipotle to outperform from market perform.

Cramer noted one tailwind in particular as the economy reopens.