Jim Cramer Calls $30 a Good Level to Buy Chipotle

Insider Monkey·10 Oct 2026·

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Analyst Earnings Price Action Hotels, Restaurants & Leisure

CMG ▲

SBUX ±

Summary · why it matters

Jim Cramer said $30 is a good level to buy Chipotle Mexican Grill, telling a Mad Money caller on October 7 that he is probably one of the few people who thinks so. Chipotle reported second-quarter revenue of approximately $3.3 billion, up 9.3%, with comparable restaurant sales up 2.2% on a 1% increase in transactions and a 1.2% rise in average check, and management raised its full-year comparable-sales outlook to low-single-digit growth while maintaining plans for 350 to 370 restaurant openings. Profitability has not kept pace: food, beverage and packaging costs rose to 29.7% of revenue from 28.9%, labor costs rose to 25% from 24.7%, quarterly net income fell to $403.5 million from $436.1 million, and adjusted diluted EPS was unchanged at $0.33. On October 8, Chipotle shares rose approximately 6% after a report that Starbucks had explored a takeover, though Starbucks declined to comment and no acquisition agreement was announced. The stock trades at approximately 25.8x forward earnings, versus 17.9x for McDonald's and 22.4x for Yum! Brands, while hedge fund holders fell to 63 in the second quarter from 68 in the first, with Arrowstreet Capital the most prominent holder at 24.24 million shares and short interest at 3.60% of the public float.

Chipotle Mexican Grill Inc ▲

Starbucks Corporation ±