Pershing Square Exercises Chipotle Options ~ market folly

Wednesday, October 26, 2016

Pershing Square Exercises Chipotle Options

Bill Ackman's activist firm Pershing Square Capital Management filed an amended 13D with the SEC regarding their position in Chipotle (CMG).  Per the filing, Pershing's ownership stake remains unchanged at 9.9% of the company.

However, the filing notes that they exercised forward purchase contracts on CMG on October 20th.  Total trade amount was just over $947 million and yielded them over 2.32 million shares of Chipotle common stock.

Chipotle just reported earnings yesterday and the stock is trading down 8% today.

You can view other recent Pershing Square portfolio activity here.

Per Google Finance, Chipotle "operates Chipotle Mexican Grill restaurants. The Company's Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The Company operates approximately 1,970 Chipotle restaurants throughout the United States, over 10 in Canada, seven in England, four in France and one in Germany. The Company's restaurants include over 10 ShopHouse Southeast Asian Kitchen restaurants, serving Asian-inspired cuisine. The Company owned and operated approximately three Pizzeria Locale restaurants, a fast casual pizza concept, resulting in a totaling of approximately 2,010 restaurants. The Company sells gift cards which do not have an expiration date."

blog comments powered by Disqus