CNBC’s Jim Cramer is predicting that shares of Chipotle Mexican Grill could soar to $1,000 each, boosted by its tech initiatives, including partnering with third-party delivery services.
“I think Chipotle can go to a thousand. It is a great stock here,” Cramer said Tuesday on “Squawk Box.”
The fast-casual stock has nearly doubled in 2019, gaining about 2.6% on Monday to close at $840.47. While pretty flat Tuesday, the stock was about 2% away from its record high and nearly 20% away from the $1,000 per share level.
“That’s the one you want to be in,” the “Mad Money” host added.
In the past, Cramer has been bullish on the restaurant chain, saying last month that he suspects Wall Street to “anoint” Chipotle before the end of the year. The company reports third quarter earnings next month.
Since bottoming last year, after two food safety scares, Chipotle has remodeled stores, digitized services, launched a loyalty program, grew its marketing and added food items.
“If you want technology, you go after Chipotle,” Cramer said. “They have a got a lot of good things in the pipe.”
Since partnering with DoorDash last year, Chipotle now offers delivery at 95% of its locations. Postmates and Tapingo also deliver Chipotle orders.
In the second quarter, Chipotle nearly doubled its digital sales, making up nearly 20% of all sales for the quarter.
“The delivery thing is a big factor,” Cramer said
To underscore his point, Cramer contrasted Chipotle with Domino’s Pizza, whose CEO Ritch Allison said on CNBC last week that the company has no plans to partner with third-party delivery apps.
“That’s why Domino’s has been hurt,” Cramer said.
Domino’s executives have mentioned the competition from third-party apps on recent earnings calls, including in July, when the company reported weaker same-store sales growth.
On Tuesday, Papa John’s new CEO Rob Lynch said the pizza chain is embracing delivery apps. In March, Papa John’s partnered with DoorDash.