5 New Stocks in Kamyar Khajavi’s MIK Capital Portfolio

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In this article, we will discuss the 5 new stocks in Kamyar Khajavi’s MIK Capital portfolio. If you want to read our detailed analysis of Kamyar Khajavi’s history, investment philosophy, and hedge fund performance, go directly to the 10 New Stocks in Kamyar Khajavi’s MIK Capital Portfolio.

5. Chipotle Mexican Grill, Inc. (NYSE:CMG)

MIK Capital’s Stake Value: $8,868,000

Percentage of MIK Capital’s 13F Portfolio: 4.5%

Number of Hedge Fund Holders: 35

Chipotle Mexican Grill, Inc. (NYSE:CMG), an American chain of restaurants, was founded by Steve Ells in 1993. Headquartered in Newport Beach, California, Chipotle serves Mexican food at over 2,700 branches spread not only across the US but in Canada, UK, France, and Germany as well. Brian Niccol is the current CEO and Chairman of the company.

In the Q2 2021 investor letter of Pershing Square Holdings, the fund mentioned Chipotle Mexican Grill, Inc. (NYSE: CMG). Here is what the fund said:

Chipotle’s track record of superb performance has continued in 2021, driven by ongoing strength in digital sales and a recovery of in-store ordering. Digital gains achieved during the pandemic have proven resilient, with digital sales growing 11% in Q2 compared with the prior year, highlighting the limited overlap with in-person occasions. The company has now recovered about 70% of its pre-pandemic in-restaurant sales volumes, with the opportunity to drive these sales meaningfully higher once more schools and workplaces reopen after Labor Day. Near-term performance is accelerating, with management forecasting same-store sales growth from 2019 levels in the low- to mid-20% range in Q3, up from 18% growth last quarter.

In May, Chipotle announced that they would increase hourly wages to a national average of $15 by the end of June, and advertised a path for a new employee to earn an annual income of $100,000 in as little as three and a half years. This resonated extremely well with existing and prospective employees, with staffi ng levels now above 2019 levels following some previously pronounced labor shortages that limited sales. Chipotle increased menu prices by 3.5% and 4.0% to cover the wage increase, and has not seen any customer resistance, demonstrating the signifi cant pricing power enabled by Chipotle’s brand strength and attractive customer value proposition…” (Click here to see the full text)

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