Fast Company

9 The Reckoning

NEW PRESSURES, LESSONS LEARNED, AND WHAT HAPPENS NOW

On September 6, Chipotle’s leadership team learned that investor William Ackman had amassed a 9.9% stake in the company through his hedge fund, Pershing Square. In an SEC filing disclosing the position, Pershing called Chipotle “undervalued,” with a “strong brand, differentiated offering, enormous growth opportunity, and visionary leadership.” It also stated its intention to “engage in discussions with [Chipotle’s] management and board of directors” about everything from the composition of the board to the company’s cost structure and strategic plans. Chipotle’s share price jumped nearly 6% on the news.

Ackman is one of Wall Street’s most high-profile activist investors. Known for his controversial bets and caustic approach, he’s not like “those individuals” in Chipotle’s annual shareholder meeting, as Moran described them, who “read proposals and air a protest or two.” In the past, Ackman has taken substantial positions in fast-food chains, including McDonald’s and Wendy’s, and then agitated for them to adopt major transformations

You’re reading a preview, subscribe to read more.

More from Fast Company

Fast Company2 min readIntelligence (AI) & Semantics
A Supporting Chance
PERFORMANCE optimization in sports isn't new. But a recent shift toward prioritizing athletes' health, safety, and wellness has been seismic. Driving this change are the same kinds of algorithms that have personalized nearly every aspect of our digit
Fast Company1 min read
10 kinetx
IN SEPTEMBER 2023, NASA's OSIRIS-REx spacecraft dropped off the first samples from an asteroid collected by the U.S. The half-pound capsule that parachuted to the ground in Utah was the payoff of the craft's miraculous journey on which it landed on a
Fast Company12 min read
08 for Whom The Bell Tolls
FOR SHOWING THE WORLD THAT TACOS ARE A STATE OF MIND NO ONE REALLY KNOWS who first came up with the idea of Taco Tuesday. One of the earliest references can be found in a newspaper ad for El Paso, Texas's White Star Cafeteria from Monday, October 16,

Related Books & Audiobooks