Pershing Square Holdings, an investment holding company, released its first half 2023 investor letter. A copy of the same can be downloaded here. The fund generated NAV performance of 10.0% during the first half of 2023 and a total shareholder return of 5.4% due to the widening of discount to NAV at which PSH’s shares trade. Year-to-date, PSH’s NAV return through August 15, 2023, was 13.1% compared to 16.8% for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Pershing Square Holdings highlighted stocks like Chipotle Mexican Grill, Inc. (NYSE:CMG) in the first half 2023 investor letter. Headquartered in Newport Beach, California, Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. On September 1, 2023, Chipotle Mexican Grill, Inc. (NYSE:CMG) stock closed at $1,938.61 per share. One-month return of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 2.54%, and its shares gained 19.92% of their value over the last 52 weeks. Chipotle Mexican Grill, Inc. (NYSE:CMG) has a market capitalization of $53.482 billion.
Pershing Square Holdings made the following comment about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q2 2023 investor letter:
“Chipotle Mexican Grill, Inc. (NYSE:CMG)’s business strength continued in 2023, driven by the company’s focus on exceptional food and operational excellence. During the second quarter, Chipotle grew same-store sales by 7.4%, or 40% from 2019 levels. Transactions grew 4.4%, a sequential improvement compared to the first quarter, and price increases from 2022 contributed 5.5% offset somewhat by a shift from group to individual orders which was a 2.5% headwind. The negative group to individual impact should shrink in the balance of the year and cease to be a headwind as we enter 2024.
Chipotle’s ongoing traffic momentum is fueled by improving in-restaurant execution and its continued cadence of successful menu innovation. The current limited time offering, chicken al pastor, is ordered in one out of every five transactions. Management plans to launch a new limited time offering later in the third quarter. Unlike most competitors, Chipotle has not yet taken pricing in 2023, thereby further improving its industry-leading value proposition. Management did, however, signal its openness to increasing menu prices later this year if cost inflation persists…” (Click here to read the full text)
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Chipotle Mexican Grill, Inc. (NYSE:CMG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of second quarter which was 47 in the previous quarter.
We discussed Chipotle Mexican Grill, Inc. (NYSE:CMG) in another article and shared Carillon Tower Advisers’ views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.