If You Invested $1,000 In Chipotle Mexican Grill Stock When Bill Ackman's Pershing Square First Entered, Here's How Much You'd Have Today

Billionaire investor Bill Ackman has been bullish on Chipotle Mexican Grill Inc CMG since 2016. Ackman, founder and CEO of Pershing Square Capital, admires the company’s cash-generative business model. Chipotle stock is up 50% over the past year, and analysts continue to be bullish on the stock.

Also Read: Chipotle Mexican Grill To Gain From Higher Traffic, Stable Beef Prices & More: Analyst

Pershing Square capital first invested in Chipotle stock in the third-quarter of 2016 at an estimated average price of $435. The stock is now trading at around $2,272.

The chart above depicts the stock’s trajectory from the third quarter of 2016 to now. Hence, if you invested $1,000 into the stock right about the time Ackman became bullish on it, your investment would have grown to about $5,715 today. That’s a whopping 471.5% return. In annualized terms, that’s a 73% CAGR.

Since 2016, Ackman has grown fond of, and invested in, Chipotle stock time and again. As of the latest 13F filing, Chipotle stock was Pershing Square Capital’s top holding, commanding 16.65% of the portfolio.

Pershing Square Capital is also one of the top institutional holders of CMG stock.

Pershing Square Capital currently owns 3.47% of Chipotle Mexican Grill’s outstanding shareholdings.

Having gained 50% in one year, investors start to wonder whether there’s any upside left. Despite appearing to have a high valuation, CMG is well-positioned due to its exceptional business model, which has resulted in high growth expectations and resilience even in the face of consumer challenges.

Analysts who recently reviewed the stock appear to hold the same conviction:

• Oppenheimer rated the stock Outperform with a price target of $2,525.
• Stifel has a price target of $2,450 with a Buy rating.
• Barclays rates the stock Equal-Weight with a price target of $2,246

Read Next: Bill Ackman’s Pershing Square Rebounds In 2023, Surpassing S&P 500 Gains

Photo: Shutterstock and an image created using artificial intelligence with MidJourney.