Cramer Still Likes Chipotle

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By Douglas A. McIntyre Published

Cramer tonight on CNBC’s MAD MONEY was discussing when he had previously brought on Danny Meyer last week to review what multiples he will pay for the forward earnings on restaurant stocks.  He is introducing a multiple for hospitality.  Cramer talked about Chipotle (CMG-NYSE) and said the hospitality is one of the issues you have to consider with restaurants instead of just earnings and forward estimates.  Cramer said the CMG trades at 49-times earnings and it’s richly valued and at a premium to the other restaurants.  Cramer is saying this isn’t just a bunch of numbers on paper. CMG said the numbers look expensive on the surface, but this one isn’t if you break it down.  He was hard to follow tonight on the logic because he was going super-fast (even compared to normal ranting evenings).  He is also violating his normal valuation methodologies; but he says he’d buy Chipotle (CMG).

Jon C. Ogg
February 1, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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