Bill Ackman buys 10% of Chipotle
Some in the business were not heartbroken to see Chipotle take a whuppin’ in 2016, noting its arrogance and public disparagement of other restaurant chains prior to hitting a string of food safety problems. But even its disparagers likely felt a pang of sympathy when word emerged that Bill Ackman, the notoriously meddlesome investor, had bought a 9.9% stake in the chain.
Ackman, after all, had strong-armed Wendy’s and McDonald’s to consider changes in direction. Wouldn’t he do the same with Chipotle, a much smaller and less-established brand?
Chipotle apparently thought so. It hired consultants and legal counsels in anticipation of a struggle for control.
More recently, Chipotle and Ackman both stated publicly that conversations about the burrito specialist’s direction had indeed taken place, but characterized the interactions as amicable.
Word leaked, however, that the parties had negotiated a pact behind closed boardroom doors to reflect Ackman’s input. Shortly afterward, Monty Moran stepped down as co-CEO and the chain reshuffled its board.