Billionaire Bill Ackman’s Top 3 Stock Picks

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

Pershing Square Capital Management’s Stake Value as of 9/30: $1,660,862,000

Percentage of Pershing Square Capital Management’s 13F Portfolio as of 9/30: 21.08%

Bill Ackman’s fund kept its share count in Chipotle Mexican Grill, Inc. (NYSE:CMG) the same in Q3 with a holding of slightly over 1.1 million shares worth $1.66 billion at the end of September. Given the position, Chipotle Mexican Grill, Inc. (NYSE:CMG) ranks #2 on our list of Billionaire Bill Ackman’s Top 6 Stock Picks and the stock accounts for 21.08% of the fund’s 13F portfolio at the end of Q3. Although shares of the burrito chain are down 11.6% year to date, Ackman believes the company is well positioned given the current economic climate.

Bill Ackman commented Chipotle Mexican Grill, Inc. (NYSE:CMG) in an August shareholder letter,

We believe Chipotle is one of the best-positioned consumer companies for the current inflationary world. Given significant
inflation in food and labor costs, management has planned a menu price increase of approximately 4% for August following
a similarly-sized price increase in March. The company has tremendous pricing power due to the superb quality of its food
which is priced at a discount to many competitors with inferior offerings, marketing focused on food quality and freshness
rather than cost, and a customer base that over-indexes to higher-income consumers, some of whom are trading down
from pricier alternatives.

Chipotle’s economic model remains firmly intact, with restaurant-level margins in excess of 25% in the second quarter, up
0.8% year-over-year, and a consistent level of profitability expected for the current quarter. The company is debt-free and
generates nearly all its sales in the U.S., insulating its earnings from the foreign currency headwinds facing many other
large consumer companies.

To accelerate Chipotle’s growth beyond the company’s continued strong results, management is focused on improving
throughput for in-store orders, and increasing order accuracy and timeliness for digital orders.

In Q3, Chipotle Mexican Grill, Inc. (NYSE:CMG) reported adjusted EPS of $9.51 on sales of $2.2 billion versus the consensus of $9.21 on sales of $2.23 billion. Comparable restaurant sales for the period rose 7.6%. For outlook, management sees fourth quarter comparable restaurant sales growth in the mid to high single digits.