The Morning Brief: Chipotle’s Stock Suffers from Heartburn

The burrito purveyor’s shares slid on Tuesday, to the likely chagrin of Pershing Square’s Bill Ackman.

Shares of Bill Ackman favorite Chipotle Mexican Grill fell 7.26 percent on Tuesday, to close at $425.60, after the casual-dining chain warned that marketing and promotion costs would rise in the second half of the year. The stock is also down more than 14 percent from its May 15 high. Last December Chipotle agreed to add four board members as part of a compromise settlement with Ackman’s Pershing Square Capital Management. At the end of the first quarter, Pershing Square was the largest shareholder. The stock was also the activist’s third-largest long position.


Sachem Head Capital Management’s Scott Ferguson has resigned from the board of directors of Autodesk. Under an earlier agreement announced in February, the activist hedge fund manager said he would leave the board once the software company hired a new chief executive officer. This event finally occurred on Monday, when the company named Andrew Anagnost president and CEO, effective June 19. At the recent annual meeting, Ferguson was overwhelmingly elected to another board term.


Adage Capital Partners boosted its stake in e.l.f. Beauty to nearly 2.5 million shares, or 5.47 percent of the cosmetics company, also known as Eyes Lips Face.