4 Best Stocks to Buy in 2023 According to Bill Ackman

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

Pershing Square’s Q1 2023 Stake: $1.758 billion

Chipotle Mexican Grill, Inc. (NYSE:CMG) is a California-based operator of fast-casual restaurant chains. According to its 10-K report, the company operates in over 3,200 locations as of February 2023. Chipotle Mexican Grill, Inc. (NYSE:CMG)’s stock has made significant strides in 2023 and is up 52.86% year-to-date at the time of writing, compared to 9.78% for the S&P 500.

Since the fourth quarter of 2016, Pershing Square has been the largest stakeholder of  Chipotle Mexican Grill, Inc. (NYSE:CMG) with the exception of a few quarters. In the first quarter of 2023, the firm held over 1.029 billion of the company’s shares, valued at $1.758 billion, covering 17.2% of Pershing Square’s portfolio.

On April 26, Truist analyst Jake Bartlett reaffirmed a Buy rating on Chipotle Mexican Grill, Inc. (NYSE:CMG) shares with a $2,270 price target, up from $1,960.

Ensemble Capital Management made the following comment about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q1 2023 investor letter:

“Chipotle Mexican Grill, Inc. (NYSE:CMG) (+23.12%): The company continues to attract loyal customers to their all natural, fresh food alternative to the highly processes, junk food sold by most fast food companies. Despite needing to raise prices by double digit rates to offset inflation in food prices and higher labor costs, the company has seen resilient customer demand. While digital orders have fallen from peak COVID levels, digital sales stabilized in the fourth quarter at approximately 40% of all orders or twice the volume seen pre-COVID. The company has remained busy opening new locations with a focus on those that can support a Chipotlane, the company’s drive through concept that leverages customers’ ability to order ahead on their phones to make pick up times very short. Today, 18% of all locations have a Chipotlane pick up option compared to just 3% pre-COVID.”