Billionaire investor Bill Ackman counts restaurant company Chipotle Mexican Grill Inc (NYSE:CMG) as one of the previous largest holdings in the Pershing Square Capital Management hedge fund. That prior holding could come under attack with calls for boycotts due to Ackman's involvement.
Here's why.
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Chipotle Boycott Calls on Social Media
Social media users have been calling for boycotts of Chipotle restaurants after learning that Ackman donated $10,000 to a GoFundMe set up for ICE agent Jonathan Ross, who shot and killed Renee Nicole Good in Minnesota last week.
While Ackman is an investor in Chipotle, the restaurant company wanted to make sure consumers know that he's not involved in the day-to-day operations or a member of the board of directors.
"Bill Ackman is not affiliated with Chipotle," the company said on its Threads account.
The acknowledgement of Ackman could show how much the restaurant company doesn't want to face boycotts and how it is trying to distance itself from the heightened political climate over the events that happened in Minnesota, as reported by the New York Post.
Some users on social media referenced Ackman as the owner of Chipotle, incorrectly labeling his involvement with the restaurant company.
Ackman invested over $1 billion in Chipotle in September 2016, acquiring a 9.9% stake via Pershing Square Capital Management. The investment came after the stock fell due to food-safety issues and slower sales.
Pershing Square Capital Management was previously one of the largest shareholders in the company and pushed for changes.
In recent years, Ackman's hedge fund lowered its stake in the company and took gains. The fund reported a stake of 21,541,177 shares at the end of the third quarter, making the stock the eighth largest position in Pershing Square Capital Management at 5.8% of the portfolio.
The hedge fund later said it sold the entire position in late 2025.
Ackman Shares Reasoning Behind Donation
Author Shannon Watts was among the people to speak out against Ackman's donation to the GoFundMe, labeling it as "reward money for shooting a mother of three in the face."
Ackman took to X to defend the donation, saying people who said it was a reward were doing so to "generate clicks and boost virality."
"My purpose in supporting Ross and attempting to support Good was not to make a political statement. I was simply continuing my longstanding commitment to assisting those accused of crimes of providing for their defense," Ackman said in a lengthy X post.
Ackman said he was planning to donate to a GoFundMe set up for Good's family, before it was closed after achieving a goal of raising $1.5 million.
"I strongly believe that only a detailed forensic investigation by experts and a deep understanding of the law that applies will enable us to determine whether Ross is guilty of murder."
The billionaire told a story of being accused of a crime he didn't commit 23 years ago, for which he was "convicted in the headlines."
Ackman said he wanted to donate to Ross, knowing the ICE agent may need funds to cover his defense costs. The reason for a potential donation to Good's family was due to it being "the right thing to do," Ackman said.
Instead of making the donation anonymous, Ackman thought his name would help raise additional funds from other people.
"Ross has only been convicted by some in the world of public opinion. He has not been charged with a crime."
What's Next for Chipotle
Chipotle hopes that its clarification that Ackman is not affiliated with the company will stop boycotts from happening at its stores.
The restaurant company recently saw Chris Brandt, who was president and chief brand officer, step down after eight years. Chief Legal Officer Roger Theodoredis also left the company, as reported by RestaurantBusiness.
Chipotle is set to report fourth-quarter financial results on Feb. 3, with analysts expecting earnings per share to come in slightly below last year's fourth quarter and revenue to rise from $2.85 billion to $2.96 billion, according to data from Benzinga Pro.
The company has beaten analyst estimates for earnings per share in three straight quarters, while revenue has missed analyst estimates in five straight quarters.
Chipotle could benefit from recent focuses on protein food menu items, which are a core to Robert F. Kennedy Jr.'s new food pyramid.
Telsey analyst Sarang Vora highlighted the company's North American expansion and international expansion in a recent investor note. The analyst, who has an Outperform rating and $50 price target, said Chipotle can be a "global restaurant brand."
Vora expects unit growth of 8% to 10% in the coming years along with average unit volumes returning to growth in 2026 and 2027.
CMG Price Action: Chipotle Mexican Grill closed Wednesday up 2.99% at $40.59. The stock’s 52-week low is $29.75 and its 52-week high is $59.57.
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