Chipotle investors need to hang tight despite the restaurant chain’s latest health scare, CNBC’s Jim Cramer said Wednesday.
“I still think these guys are out of the woods,” Cramer said on “Squawk on the Street.” “This company earned people’s trust and I am going to minimize this. I myself am going to say if the stock goes below $500, I think you should be a buyer.”
Shares of Chipotle were down 4 percent at $502 in early trade Wednesday.
On Tuesday, the company said a restaurant near Boston was temporarily shut down after four employees fell sick. Chipotle had been under scrutiny following food-borne illness outbreaks across several of its restaurants last year.
“Bad luck. That’s what they’ve got,” Cramer said. “This could put front and center this idea that it’s not better yet.”
Disclosure: Cramer’s trust did not own Chipotle stock when this article was published.