Chipotle Exited by Pershing Square, Earnings Estimate Cut 5%
Pershing Square exited its Chipotle Mexican Grill position in the fourth quarter of 2025 as part of a broader portfolio reshaping strategy. Zacks Investment Research cut CMG’s current-year earnings estimate by 5% over the last 60 days and placed the stock on its Zacks Rank #5 strong sell list.
1. Pershing Square Exit
During the fourth quarter of 2025, Pershing Square Capital Management liquidated its entire position in Chipotle Mexican Grill as part of a strategic portfolio realignment following its shift away from a planned dual fund IPO. The exit marked the culmination of several high-profile moves by the hedge fund, which had previously built stakes in other major companies while abandoning its Chipotle holding.
2. Zacks Strong Sell Listing
Chipotle Mexican Grill’s current-year earnings per share consensus estimate has been revised downward by 5% over the past 60 days, prompting Zacks Investment Research to assign the stock a Zacks Rank #5 strong sell rating. This downgrade reflects analysts’ concerns over margin pressures and slower same-store sales growth amid rising labor and commodity costs.