Pershing Square Holdings Ltd. (PSHZF) Q3 2025 Earnings Call Transcript

On its Q3 2025 call, Pershing Square said year-to-date performance through Q3 and into November is north of 20%, outpacing the S&P, but management acknowledged some investments underperformed. The firm sold its remaining stake in Chipotle after the company’s Q3 report, ending a more-than-nine-year holding; the position’s IRR from inception to exit was just under 16% versus just over 15% for the S&P, while prior partial sales (85% of the stake) produced a realized IRR of just under 22% and $2.4 billion in cumulative profits.

Analysis

Pershing Square reported year-to-date performance through Q3 and into November of north of 20%, which management said is nicely in excess of the S&P 500, while acknowledging not all positions have performed well. Management opened the call by flagging underperforming investments and emphasized active portfolio management rather than passive complacency.

The firm disclosed it sold its remaining shares in Chipotle after the company’s Q3 earnings report, ending a more-than-nine-year holding; the position’s IRR from inception to exit was just under 16% versus just over 15% for the S&P 500. Earlier partial sales (85% of the initial 10% stake) generated a realized IRR just under 22% and $2.4 billion in cumulative profits, illustrating substantial realized gains despite the ultimate full exit.

The announcement signals Pershing Square is willing to fully liquidate legacy holdings in response to quarterly results, converting paper appreciation into cash and realized returns that support NAV. Investors should read this as evidence of active risk management and portfolio turnover; the negative per-ticker sentiment on CMG and the firm’s explicit sale create a near-term watch item for Chipotle shares and for where Pershing Square redeploys capital next.

Key Decisions for Investors

• Reassess exposure to Chipotle (CMG) and review the company’s Q3 disclosures given Pershing Square’s full exit and the negative sentiment signal
• Monitor Pershing Square Holdings’ forthcoming public filings and commentary to track redeployment of capital and the NAV impact of the $2.4 billion in realized profits
• Consider trimming or hedging restaurant or consumer discretionary holdings if company-level fundamentals mirror the reasons driving Pershing Square’s exit after earnings
• Use upcoming calls and 13F/holding updates as catalysts to evaluate whether to increase conviction in Pershing Square’s repositioning or to reduce exposure pending clarity on new investments