10% Of Chipotle Bought By Activist Investors, Here’s What We Know

chipotle hid several foodborne illness outbreaks

Chipotle has seen its ups and downs this past year. With all the outbreaks, losses, and disavowment from fans, the fast-casual Mexican Grille needs to make a major comeback.

According to NRN, the Securities and Exchange Commissions filings on Tuesday revealed that investor group Pershing Square Management LP took a 9.9 percent stake in Chipotle. CEO William Ackman called the stock undervalued and an attractive investment with strong growth opportunity for Pershing.

As an activist investor, Pershing is pretty well known for making crucial changes. Here are some of the things we know about Ackman and Pershing’s move into Chipotle so far:

– The chain could start serving breakfast, CNBC reports. In a credit note to clients, Credit Suisse, a leading financial services holding company, says a breakfast menu could help the chain improve digital engagement. Other possible changes include new beverages and drive-thru options.

– Credit Suisse also says with Pershing holding a seat on the board, they could move Chipotle away from the attempts to win customers back through discounts and giveaways and focus on rebuilding the brand instead.

– Fortune did the math and estimated that Ackman has already made about $80 million since buying Chipotle stock about a month ago, though a spokesperson for Pershing declined to comment on those numbers.

Whatever changes Pershing looks to make in the flailing company, we’ll see the investor group’s plans for Chipotle soon enough. Until then, we’ll quietly enjoy the occasional free burrito and embrace the Sandman’s kiss while on the clock.

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