Bill Ackman Reduces Investment in Alphabet While Berkshire Hathaway, Led by Warren Buffett, Increases Its Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 14 2025
0mins
Should l Buy CMG?
Source: Benzinga
Changes in Holdings: Pershing Square Capital Management, led by Bill Ackman, made no new investments in the third quarter but reduced its stake in Alphabet Class A shares by 10% and sold small portions of its holdings in three other companies.
Top Holdings Overview: As of September 30, the fund's top holdings included Uber (20%), Brookfield (19%), and Howard Hughes Holdings (11%), with Alphabet Class C and Restaurant Brands also significant at 11% and 10%, respectively.
Market Activity: The fund's adjustments come amid notable market activity, including a new position in Alphabet Class A shares by Warren Buffett and Berkshire Hathaway, which may have influenced Pershing Square's decision to cut its stake.
No Stake Increases: Throughout the third quarter, Pershing Square did not increase its stake in any of its existing positions, indicating a cautious approach to its investment strategy during this period.
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Analyst Views on CMG
Wall Street analysts forecast CMG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMG is 45.95 USD with a low forecast of 35.00 USD and a high forecast of 56.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
18 Buy
7 Hold
0 Sell
Moderate Buy
Current: 38.450
Low
35.00
Averages
45.95
High
56.00
Current: 38.450
Low
35.00
Averages
45.95
High
56.00
About CMG
Chipotle Mexican Grill, Inc. is a restaurant company. The Company develops and operates restaurants that serve a menu of burritos, burrito bowls, quesadillas, tacos, and salads, made using fresh ingredients. The Company operates approximately 3839 restaurants in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates. It owns and operates all its restaurants in North America and Europe. The Company is focused in serving sourced, classically cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Its menu includes Burrito, Burrito Bowl, Lifestyle Bowl, Quesadilla, Salad, Tacos, Kid’s Meal, Chips and Sides, and Build your Own (digital only). It also includes Raymonte’s Chicken Bowl, The Mr. Fantasy Burrito, Carne Asada, Build-Your-Own Chipotle, catering and group order. Its subsidiaries include Chipotle Mexican Grill Canada Corp., Chipotle Mexican Grill France SAS, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chipotle Faces Sales Decline, Plans to Attract Customers
- Sales Decline: Chipotle experienced a 3.2% drop in transactions and a 2.5% decline in comparable sales in Q4 2025, indicating a trend of customer loss, with overall comparable sales down 1.7% for the year, posing challenges for future growth.
- Pricing Strategy Adjustment: To combat 3% to 4% cost inflation, Chipotle plans to raise prices by 1% to 2% in 2026, which will keep its price increases below industry averages, potentially impacting profit margins but aimed at attracting customers back.
- Efficiency Equipment Investment: Chipotle has installed high-efficiency equipment in 350 restaurants, reducing prep time by 2 to 3 hours and eliminating prep time during peak hours, with plans to expand to about 2,000 restaurants by the end of 2026, enhancing customer satisfaction and improving profitability.
- Long-Term Growth Outlook: Despite poor short-term financial performance, Chipotle is committed to attracting customers through a strong value proposition and faster service, which is expected to yield returns for long-term investors, although the market environment remains uncertain.
See More
Chipotle's 2025 Performance Analysis and Outlook
- Stable Revenue Growth: In the first nine months of 2025, Chipotle's revenue grew by 6% year-over-year, demonstrating brand resilience and sustained market demand despite inflation and consumer spending pressures.
- Increased Digital Sales Share: Digital sales accounted for 37% of total revenue in Q3, reflecting the company's ongoing investments in mobile ordering and loyalty programs, which enhanced customer experience and drove sales growth.
- Management Pricing Strategy: Chipotle opted not to aggressively raise prices to offset rising food and labor costs, focusing instead on value, which compressed margins in the short term but preserved customer trust and brand equity.
- Long-Term Growth Potential: Despite challenges in 2025, Chipotle continues to show strong cash flow and attractive returns on capital, with future investment returns likely relying more on execution than valuation expansion, making 2026 a critical year to monitor.
See More
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- Strong Earnings Report: Starbucks reported a 5% increase in global revenue and growing same-store sales in its Q4 2025 earnings, alongside the opening of 128 new coffeehouses, indicating robust market demand, although overall performance still requires improvement.
- China Market Transformation: The agreement with Boyu Capital to convert its China locations into a joint venture, with Boyu taking up to a 60% stake, could save Starbucks $39 million monthly in operating costs, yet raises concerns about brand management and operational oversight.
- Significant Membership Growth: As of last quarter, Starbucks boasted 35.5 million active members, a substantial increase from 24 million at its peak in 2021, reflecting enhanced brand loyalty, despite a sharp decline in net income.
- Increased Valuation Risk: With a P/E ratio nearing 78, significantly above the S&P 500 average of 29.5, the market appears to have overly optimistic expectations for Starbucks' recovery, prompting investors to carefully consider their positions in the stock.
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Texas Instruments Acquires Silicon Labs in $7.5B Deal
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- Positive Market Reaction: Following the acquisition announcement, Silicon Labs' stock surged by 49%, indicating strong investor confidence in the deal and reflecting optimistic expectations for consolidation within the semiconductor industry.
- Strong Earnings Performance: Silicon Labs reported an adjusted EPS of 56 cents for Q4, slightly above the consensus estimate of 55 cents, demonstrating stable financial performance that enhances the attractiveness of the acquisition.
- Industry Consolidation Trend: This acquisition represents a strategic move for Texas Instruments to expand its product line and signifies an acceleration in semiconductor industry consolidation, potentially triggering more similar deals that could reshape the market landscape.
See More
Chipotle's 2026 Outlook and Risk Analysis
- Customer Traffic Risk: In 2025, Chipotle's same-store sales growth was only 0.3%, primarily due to a decline in customer visit frequency; if traffic does not recover in 2026, it could lead to flat or declining transactions, putting pressure on valuation.
- Intensified Competitive Landscape: Facing discounting and promotional strategies from other restaurant brands, Chipotle has chosen to avoid heavy discounting to protect brand equity, although this may risk short-term traffic and market share.
- Margin Pressure: Chipotle experienced a 1% compression in operating margin in 2025 due to rising food and labor costs; if these costs remain volatile, the company may face difficult pricing decisions that could impact profitability.
- Digital Sales Complexity: While digital ordering enhances convenience and customer loyalty, it also incurs higher fulfillment costs; unless offset by efficiency gains or pricing adjustments, a high digital mix could constrain restaurant-level margins.
See More
Could Chipotle's 2026 Strategy Be the Key to Turning Things Around?
Chipotle's Growth Strategy: Chipotle Mexican Grill is on track for sustained growth, with plans for increased investment in technology, menu innovation, and accelerated store count growth, particularly in international markets like Mexico, Singapore, and South Korea.
Q4 Performance and Stock Outlook: The company reported a revenue increase of 4.9% year-over-year in Q4, despite a decline in comparable sales. Analysts suggest that the stock, currently trading at deep-value levels, could see significant gains if execution aligns with forecasts.
Market Position and Analyst Ratings: Analysts rate Chipotle stock as a "Moderate Buy," citing brand strength and value proposition, while cautioning about the uncertain economic backdrop affecting guidance for 2026.
Financial Health and Future Expectations: Chipotle's financials indicate a strong cash flow and balance sheet, with expectations for continued execution of its strategy, although management acknowledges potential challenges in consumer habits and economic conditions.
See More
Chipotle Faces Sales Decline, Plans to Attract Customers
- Sales Decline: Chipotle experienced a 3.2% drop in transactions and a 2.5% decline in comparable sales in Q4 2025, indicating a trend of customer loss, with overall comparable sales down 1.7% for the year, posing challenges for future growth.
- Pricing Strategy Adjustment: To combat 3% to 4% cost inflation, Chipotle plans to raise prices by 1% to 2% in 2026, which will keep its price increases below industry averages, potentially impacting profit margins but aimed at attracting customers back.
- Efficiency Equipment Investment: Chipotle has installed high-efficiency equipment in 350 restaurants, reducing prep time by 2 to 3 hours and eliminating prep time during peak hours, with plans to expand to about 2,000 restaurants by the end of 2026, enhancing customer satisfaction and improving profitability.
- Long-Term Growth Outlook: Despite poor short-term financial performance, Chipotle is committed to attracting customers through a strong value proposition and faster service, which is expected to yield returns for long-term investors, although the market environment remains uncertain.
See More
Chipotle's 2025 Performance Analysis and Outlook
- Stable Revenue Growth: In the first nine months of 2025, Chipotle's revenue grew by 6% year-over-year, demonstrating brand resilience and sustained market demand despite inflation and consumer spending pressures.
- Increased Digital Sales Share: Digital sales accounted for 37% of total revenue in Q3, reflecting the company's ongoing investments in mobile ordering and loyalty programs, which enhanced customer experience and drove sales growth.
- Management Pricing Strategy: Chipotle opted not to aggressively raise prices to offset rising food and labor costs, focusing instead on value, which compressed margins in the short term but preserved customer trust and brand equity.
- Long-Term Growth Potential: Despite challenges in 2025, Chipotle continues to show strong cash flow and attractive returns on capital, with future investment returns likely relying more on execution than valuation expansion, making 2026 a critical year to monitor.
See More
Starbucks Shares Up 13.7% Year-to-Date: Is It a Buy?
- Strong Earnings Report: Starbucks reported a 5% increase in global revenue and growing same-store sales in its Q4 2025 earnings, alongside the opening of 128 new coffeehouses, indicating robust market demand, although overall performance still requires improvement.
- China Market Transformation: The agreement with Boyu Capital to convert its China locations into a joint venture, with Boyu taking up to a 60% stake, could save Starbucks $39 million monthly in operating costs, yet raises concerns about brand management and operational oversight.
- Significant Membership Growth: As of last quarter, Starbucks boasted 35.5 million active members, a substantial increase from 24 million at its peak in 2021, reflecting enhanced brand loyalty, despite a sharp decline in net income.
- Increased Valuation Risk: With a P/E ratio nearing 78, significantly above the S&P 500 average of 29.5, the market appears to have overly optimistic expectations for Starbucks' recovery, prompting investors to carefully consider their positions in the stock.
See More
Texas Instruments Acquires Silicon Labs in $7.5B Deal
- Acquisition Agreement: Texas Instruments is set to acquire Silicon Labs for $231 per share in an all-cash transaction valued at $7.5 billion, which not only boosts Silicon Labs' market valuation but also enhances Texas Instruments' competitive edge in the semiconductor sector.
- Positive Market Reaction: Following the acquisition announcement, Silicon Labs' stock surged by 49%, indicating strong investor confidence in the deal and reflecting optimistic expectations for consolidation within the semiconductor industry.
- Strong Earnings Performance: Silicon Labs reported an adjusted EPS of 56 cents for Q4, slightly above the consensus estimate of 55 cents, demonstrating stable financial performance that enhances the attractiveness of the acquisition.
- Industry Consolidation Trend: This acquisition represents a strategic move for Texas Instruments to expand its product line and signifies an acceleration in semiconductor industry consolidation, potentially triggering more similar deals that could reshape the market landscape.
See More
Chipotle's 2026 Outlook and Risk Analysis
- Customer Traffic Risk: In 2025, Chipotle's same-store sales growth was only 0.3%, primarily due to a decline in customer visit frequency; if traffic does not recover in 2026, it could lead to flat or declining transactions, putting pressure on valuation.
- Intensified Competitive Landscape: Facing discounting and promotional strategies from other restaurant brands, Chipotle has chosen to avoid heavy discounting to protect brand equity, although this may risk short-term traffic and market share.
- Margin Pressure: Chipotle experienced a 1% compression in operating margin in 2025 due to rising food and labor costs; if these costs remain volatile, the company may face difficult pricing decisions that could impact profitability.
- Digital Sales Complexity: While digital ordering enhances convenience and customer loyalty, it also incurs higher fulfillment costs; unless offset by efficiency gains or pricing adjustments, a high digital mix could constrain restaurant-level margins.
See More
Could Chipotle's 2026 Strategy Be the Key to Turning Things Around?
Chipotle's Growth Strategy: Chipotle Mexican Grill is on track for sustained growth, with plans for increased investment in technology, menu innovation, and accelerated store count growth, particularly in international markets like Mexico, Singapore, and South Korea.
Q4 Performance and Stock Outlook: The company reported a revenue increase of 4.9% year-over-year in Q4, despite a decline in comparable sales. Analysts suggest that the stock, currently trading at deep-value levels, could see significant gains if execution aligns with forecasts.
Market Position and Analyst Ratings: Analysts rate Chipotle stock as a "Moderate Buy," citing brand strength and value proposition, while cautioning about the uncertain economic backdrop affecting guidance for 2026.
Financial Health and Future Expectations: Chipotle's financials indicate a strong cash flow and balance sheet, with expectations for continued execution of its strategy, although management acknowledges potential challenges in consumer habits and economic conditions.
See More
