Stock Groups

Jim Cramer sees long-term potential in Portillo’s and Origin Materials

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CNBC’s Jim CramerAccording to Friday’s statement, he views long-term opportunities for publicly listed companies. Origin Materials Portillo’sInvestors interested in buying stocks can do so under certain conditions.

Let’s see what you think. “Mad Money”The host considers the investment requirements of each company.

Portillo’s

Cramer said he views Portillo’s — a Chicago-based restaurant chain known for its Chicago-style hot dogs — as an attractive story over time as it grows its store footprint nationally.

The stock won’t be able to work right now because investors are dealing with a Federal Reserve that is more aggressive, Cramer cautioned. Cramer advises that investors start “a modest position” in this area.

Cramer stated that one negative aspect of Portillo’s was the fact that Berkshire Partners (a private equity sponsor) still holds a majority stake in the company, even though it went public last October. Cramer said, “The overhang that they could finally ring on the register could do some damage.”

Cramer was nevertheless impressed by Portillo’s core principles, including the average units volumes and margins for restaurants. Cramer said the fast-casual chain is profitable as well.

Cramer stated that Portillo’s stock is still very expensive on a price to earnings basis. The stock closed at $31.73 per shares Friday. On Nov. 17, it reached an all-time record of $57.73.

However, he suggested that “if it keeps getting hit,” you buy more and gradually add to the weakness. I believe this could be an excellent long-term story for a restaurant.

Origin Materials

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