CNBC’s Jim Cramer said Thursday that companies that perpetually generate “self-help” are poised for success in this market.. In other words, they find ways to grow and perform well despite what might be happening in the broader economy.
He specifically emphasized Chipotle Mexican Grillsaying the restaurant chain can succeed even if the economy begins to slow and inflation remains high.
“When we look for reasons to buy stocks in this environment, we want companies that generate consistent self-help. Chipotle achieves this by improving throughput – how many people can they serve, say, every 15 minutes” , did he declare. . “The situation keeps getting better and it has nothing to do with GDP or inflation issues.”
The fast-casual chain released its quarterly results on Wednesday and far exceeded Wall Street’s expectations. Chipotle said its traffic and sales increased even though it raised prices. As of Thursday’s close, the company’s shares were up more than 6%. Cramer added that the burrito maker’s success may also be due to demand, that the company has what consumers want.
This type of “self-help” could be “the antidote” to the overall concerns weighing on the market, Cramer said. He added that it’s especially important to look for companies with strategies like Chipotle because factors such as increased interest in the bond market will likely continue to hurt stocks. But according to Cramer, this difficult environment is no reason to abandon the market completely.
“It takes a special type of stock to perform well when the economy is slowing and inflation won’t stop,” he said.
Chipotle did not immediately respond to a request for comment.
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