Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
CNBC did a deep dive through the most recent Wall Street research to find stocks that analysts say are underappreciated.Marketsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
CNBC sat in on an "empathy training" at Amazon PillPack's Somerville offices, which is part of new hire orientation.Technologyread more
Trade with China is the 'big unknown' for the Federal Reserve as it decides how best to support the U.S. economy, says Council on Foreign Relations Director of International...Futures Nowread more
Lobbying experts said the visit is likely an attempt to be in lawmakers' ears as they consider legislation that would impact Facebook.Technologyread more
Yardeni Research's Edward Yardeni believes the U.S. economy is picking up steam.Trading Nationread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
"We welcome their investment, and appreciate the confidence they've expressed in our brand, differentiated offering, visionary leadership and strong growth opportunities," Chipotle spokesman Chris Arnold told CNBC.
The investment is a validation that the burrito chain could bounce back after its series of foodborne illness outbreaks last year, according to three Wall Street analysts.
"This provides Chipotle with a prominent key shareholder, one that is likely to use its voice pro-actively," Mark Kalinowski, a Nomura analyst, wrote in a research note Wednesday.
However, the appearance of the activist investor may not be enough to spark a short-term turnaround for the company.
"We see no quick fix to what CMG really needs, a revitalization of top line, and activism's traditional tools for restaurants — spinoffs, refranchising, asset sales and cost cuts — don't appear to offer short-term opportunities, leaving few obvious quick levers to pull," Morgan Stanley analyst John Glass wrote in a research note Wednesday.
Still, he said, Ackman's investment could spur Chipotle to "hasten their turnaround efforts, which appear to have stalled."
The company received a boost from its Chiptopia program, which ends Sept. 30, during the second quarter, and the chain announcednew promotions last week that will run for the next month aimed at college students and families.
Glass noted that there are five potential activist moves for the restaurant chain: expanding its board, improving management's breadth of expertise, focusing on profit margins, curbing new unit expansion to increase cash flow and to either aggressively expand new food restaurant concepts or divest them altogether.
"The typical activist 'playbook' in restaurants has called for a combination of refranchising, cost-cutting and leverage," Credit Suisse analyst Jason West wrote in a research note Wednesday. "However, in our view, these options are less appealing in [Chipotle's] case given a high current valuation, lack of franchising historically, and since [Chipotle] would be selling stores that are significantly diminished relative to historic peak volumes and profits."
West said he expects Pershing to focus on improving the chain's sluggish sales.
"While CMG's sales recovery has been frustratingly slow and we see no silver bullets for a turnaround, Pershing's investment provides some validation of the long-term power of the brand," he wrote.