Billionaire Bill Ackman Continues to Sell Shares of Chipotle in Favor of an Industry-Leading Stock Where the Addressable Market Can 10X in 8 Years

Group 1: Chipotle Mexican Grill (CMG) - Bill Ackman has sold 85% of his peak stake in Chipotle over the past seven years, reducing his holdings from 144,123,150 shares in June 2018 to 21,541,177 shares by March 2025 [6][9][10] - Chipotle's stock has outperformed significantly, gaining 562% since mid-2018, which is 431 percentage points above the S&P 500 during the same period [10] - The company's current forward P/E ratio stands at 40, which is considered high given the recent slowdown in comparable restaurant sales, including a reported decline of 0.4% in the March-ended quarter [13][14] - Chipotle's innovation and premium positioning in the restaurant sector have contributed to its valuation, but there are concerns about the sustainability of this growth amid inflationary pressures [12][14] Group 2: Uber Technologies (UBER) - Ackman has acquired 30,301,161 shares of Uber, making it the largest holding in Pershing Square's portfolio, representing almost 19% of invested assets [17] - The global addressable market for ride-sharing is projected to grow from $87.7 billion in 2025 to $918.2 billion by 2033, indicating a potential tenfold increase [18] - Ackman praises Uber's management under CEO Dara Khosrowshahi for transforming the company into a profitable growth machine [19] - Uber's current forward P/E ratio is 27, and its price-to-sales ratio is 4.4, which is significantly higher than its main competitor Lyft, raising questions about the justification for this premium [20][21] - The success of Ackman's investment in Uber will depend on how well the company manages new competition and maintains its pricing power [22]