"Bill Ackman's Pershing Square Capital made a significant portfolio shift, selling its entire stake in Chipotle Mexican Grill (NYSE:CMG) and taking a new position in Meta Platforms (NASDAQ:META | META Price Prediction), marking a rotation from consumer discretionary into AI infrastructure. The Trade That Turned Heads Ackman's firm exited Chipotle along with positions in Nike (NYSE:NKE) and Hilton (NYSE:HLT), while simultaneously investing in Meta Platforms, Amazon.com, and Hertz Global Holdings Inc. (NASDAQ:HTZ)."
"Chipotle's Q4 2025 results revealed cracks in the foundation. Comparable restaurant sales dropped 2.5%, driven by a 3.2% decline in transactions. You can raise menu prices to offset cost inflation, but if customers stop walking through the door, you've got a traffic problem, not a pricing problem. Operating margins compressed to 14.1% from 14.6% the prior year. Management's 2026 guidance? Flat comparable sales growth. In other words, management isn't expecting things to get better anytime soon."
Pershing Square Capital sold its entire stake in Chipotle Mexican Grill and exited positions in Nike and Hilton while initiating positions in Meta Platforms, Amazon, and Hertz. Chipotle's Q4 2025 comparable restaurant sales fell 2.5% with transactions down 3.2%, operating margins compressed to 14.1%, and management guiding flat comparable sales for 2026. The stock trades near 33x trailing earnings amid reduced near-term EPS expectations. Meta reported Q4 2025 revenue growth of 24% to $59.89 billion and EPS of $8.88, exceeded estimates, and is investing heavily in AI infrastructure, prompting the portfolio rotation toward technology and AI-related names.
Read at 24/7 Wall St.
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