In this article, we discuss the 3 top stock picks of billionaire Bill Ackman. If you want to read about some stocks in the Ackman portfolio, go directly to Bill Ackman Stock Portfolio: 7 Top Stock Picks.
3. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders: 58
Hilton Worldwide Holdings Inc. (NYSE:HLT) a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. The hedge fund chaired by Ackman owned close to 10.3 million shares of Hilton Worldwide Holdings Inc. (NYSE:HLT) at the end of September 2023 worth $1.5 billion, representing 14.74% of the portfolio.
On October 26, investment advisory Trusit maintained a Hold rating on Hilton Worldwide Holdings Inc. (NYSE:HLT) stock and raised the price target to $175 from $172, noting that the firm posted another steady quarter with a fundamentally strong and diversified pipeline.
At the end of the second quarter of 2023, 58 hedge funds in the database of Insider Monkey held stakes worth $3.7 billion in Hilton Worldwide Holdings Inc. (NYSE:HLT), compared to 63 in the previous quarter worth $3.9 billion.
In its first half 2023 investor letter, Pershing Square Holdings, an asset management firm, highlighted a few stocks and Hilton Worldwide Holdings Inc. (NYSE:HLT) was one of them. Here is what the fund said:
“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential. In the first half of 2023, Hilton generated robust revenue growth. In the second quarter, HLT’s revenue per room (“RevPAR”), the industry metric for same-store sales, increased 12% as compared to 2022. Recent quarters continue to benefit from stable demand and rising rates driving leisure growth to new highs, while business transient continues to sequentially accelerate, with group sales just now approaching pre-COVID levels.
While net managed and franchised units grew 4% year-over-year during the most recent quarter, slightly below the full year target which Hilton adjusted to approximately 5% per annum, net unit growth (“NUG”) is poised to accelerate in the back half of the year. While management anticipates NUG of approximately 5% this year, they anticipate it will accelerate to 5-6% in 2024 and return to its historical 6-7% range over the next several years. Net unit growth is poised to accelerate in 2024 as Hilton begins to roll out its new premium economy and long-term-stay concepts (Spark and H3, respectively) and as international development activity accelerates. Hilton signed more than 36,000 rooms in the quarter, the largest quarterly signing in the company’s history. The company’s pipeline includes 441,000 rooms with approximately 50% under construction…” (Click here to read the full text)
2. Restaurant Brands International Inc. (NYSE:QSR)
Number of Hedge Fund Holders: 26
Restaurant Brands International Inc. (NYSE:QSR) operates as a quick service restaurant company. According to regulatory filings, Pershing Square owned 23 million shares in Restaurant Brands International Inc. (NYSE:QSR) at the end of September 2023 worth $1.5 billion, representing 14.82% of the portfolio.
On November 7, investment advisory BMO Capital maintained an Outperform rating on Restaurant Brands International Inc. (NYSE:QSR) stock and lowered the price target to $85 from $88.
At the end of the second quarter of 2023, 26 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Restaurant Brands International Inc. (NYSE:QSR), compared to 27 in the previous quarter worth $2 billion.
In its first half 2023 investor letter, Pershing Square Holdings, an asset management firm, highlighted a few stocks and Restaurant Brands International Inc. (NYSE:QSR) was one of them. Here is what the fund said:
“Restaurant Brands International Inc. (NYSE:QSR)’s franchised business model is a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from its four leading brands: Burger King, Tim Hortons, Popeyes, and Firehouse Subs. QSR’s various initiatives are leading to more consistent growth across each of its brands, as demonstrated by its first half results which were well above investors’ expectations with accelerating same-store sales trends each quarter. We believe that the addition of Patrick Doyle as Executive Chair of the company has already made a material contribution to the company’s operating trajectory.
Burger King’s international business, which represents more than half of the brand’s profits reported same-store sales, were more than 30% above pre-COVID levels, in-line with best-in-class peers. Management is focused on replicating Burger King’s international success in the U.S. through its “Reclaim the Flame” program. While the company is in the early stages of implementing the program, it is already seeing positive results, with domestic same-store sales reaching 11% above pre-COVID levels during the second quarter. With the majority of the funds earmarked for advertising and store refreshes yet to be deployed and a larger store remodeling effort now underway, the brand’s results should continue to improve.
Tim Hortons in Canada achieved same-store sales of 15% above pre-COVID levels due to improving traffic trends and new products in the afternoon food and cold beverage categories. Despite having nearly 70% market share in hot beverages and breakfast, Tim Hortons continues to gain share in each category…” (Click here to read the full text)
1. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 55
Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. At the end of September 2023, Pershing Square owned 953,608 shares in Chipotle Mexican Grill, Inc. (NYSE:CMG) worth $1.7 billion, representing 16.64% of the portfolio.
On October 30, Deutsche Bank analyst Lauren Silberman maintained a Buy rating on Chipotle Mexican Grill, Inc. (NYSE:CMG) stock and raised the price target to $2,525 from $2,375, noting the firm was rolling up traffic growth.
At the end of the second quarter of 2023, 55 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in Chipotle Mexican Grill, Inc. (NYSE:CMG), compared to 47 in the preceding quarter worth $3.3 billion.
In its Q3 2023 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Chipotle Mexican Grill, Inc. (NYSE:CMG) was one of them. Here is what the fund said:
“Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates fast-casual Mexican food restaurants. The stock underperformed as quarterly same-store sales came in slightly below inflated expectations. Despite the market’s reaction, overall fundamentals remain solid with positive traffic growth and provide the company with the ability to raise prices moving forward.”
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