Bill Ackman's once-scorching bet on Chipotle Mexican Grill Inc CMG has cooled dramatically, with the burrito giant's stock now at a 52-week low. Shares closed at $38.76, down 35% year-to-date and 28% over the past year, leaving Ackman's high-conviction holding looking decidedly less appetizing – at least in the short term.
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From Star Performer To Stale Ingredient
Ackman, who first scooped up Chipotle shares in 2016, has seen the position soar more than 388% from his $8.08 average buy price. For years, Chipotle was a cornerstone of Pershing Square Capital's portfolio, delivering outsized returns while Ackman gradually trimmed the stake in massive chunks – most notably in 2018 and again in 2020 when shares were trading in the teens on a split-adjusted basis.
Today, the $850 million position still represents 5.82% of Pershing's portfolio, but its slide to a fresh low underscores how quickly Wall Street's favorite growth names can sour.
Read Also: Chipotle Is Still A Tasty Buying Opportunity Despite 20% Drop, Expert Says
Timing The Trim Like A Chef
Ackman's serial selling, particularly from 2018 to 2024, shows masterful timing. By systematically unloading millions of shares at prices from $9 to $62, he pocketed billions in gains while retaining a meaningful position.
His ability to cash out at peak valuations now cushions Pershing Square's portfolio against this year's drop, even as Chipotle faces slowing traffic and intensified competition in the fast-casual space.
Still A Feast In The Long Run?
Despite the sharp pullback, Ackman's long-term gains illustrate why Chipotle remains a hedge fund favorite. Its early embrace of digital ordering, loyalty programs, and menu innovation built a loyal investor following – and the company's ability to bounce back from past crises makes the current dip look more like a menu reset than a collapse.
Ackman's nearly decade-long hold shows his confidence in the brand's enduring pricing power and growth story, even if burrito bulls are licking their wounds today.
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