Billionaire Bill Ackman Has Been a 7-Year Seller of Chipotle, and He's Made a Stock Whose Addressable Market Can 10X by 2033 His Fund's No. 1 Holding

Bill Ackman's Pershing Square Capital Management has significantly altered its portfolio, divesting 85% of its peak position in Chipotle Mexican Grill over seven years, driven by substantial profit-taking (shares up nearly 400%), recent declines in comparable-restaurant sales (4% dip, 5% transaction dip), and a high valuation (34x TTM P/E). Concurrently, Ackman has established Uber Technologies as his fund's top holding, representing approximately 21% of invested assets at the midpoint of 2025, citing the company's intrinsic value, strong management, and the ride-sharing market's projected growth from $87.7 billion to $918.2 billion by 2033.

Analysis

Pershing Square's latest 13F filing reveals a significant strategic pivot by Bill Ackman, characterized by a substantial reduction in Chipotle Mexican Grill (CMG) and a major new investment in Uber Technologies (UBER). The fund has disposed of 85% of its peak CMG position, a move driven by more than just profit-taking on a stock that has risen nearly 400% since the initial investment. The decision is substantiated by weakening fundamentals at Chipotle, including a 4% dip in comparable-restaurant sales and a nearly 5% decline in total transactions in the most recent quarter, suggesting consumer resilience is fading amidst 3.2% food inflation. Furthermore, a trailing P/E ratio of 34 is viewed as elevated for a company with stalling organic growth. Concurrently, Ackman has established Uber as his fund's top holding, constituting 21% of invested assets. This conviction is based on a belief that Uber is intrinsically undervalued, praise for its transformation into a cash-generating business, and its dominant 76% U.S. ride-sharing market share. The bull case is further supported by the massive total addressable market, which is projected to grow over 900% to $918.2 billion by 2033, and a forward P/E of 28, which is considered reasonable given a sustained sales growth rate of 15% or higher.

Key Decisions for Investors

• Investors holding Chipotle should closely monitor the company's next earnings report for any stabilization in comparable-store sales and transaction volumes, as the reported 4-5% declines signal fundamental headwinds that justify Ackman's bearish positioning.
• The bullish case for Uber is predicated on its dominant 76% U.S. market share and a projected 34.1% CAGR in its core market; however, investors should weigh this against its forward P/E of 28, which requires sustained 15%+ sales growth to be justified.
• This portfolio rotation from a high-multiple consumer staple facing inflationary pressures to a dominant technology platform perceived as undervalued may signal a broader thematic shift, warranting a review of similar positions in investor portfolios.
• Given the concentration of Pershing Square's portfolio, Ackman's move into Uber represents a high-conviction bet that investors could consider mirroring, but the associated concentration risk should be carefully managed within a diversified strategy.