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Hedge Fund manager pulled in to fix Chipotle's sinking ship

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Bill Ackman's hedge fund is buying a 9.9% stake in Chipotle, and there's reason to believe he wants to make some changes at the embattled burrito chain.

The announcement by the hedge fund master of Pershing Square (PSHZF) sent the restaurant's stock up 5.6% during extended trading hours Tuesday.

Ackman is famous for betting big on a handful of companies. It's a move that doesn't always work well for him, considering his fund has netted a 14.3% loss so far this year.

Chipotle has been hammered with scandals lately, beginning with an E. coli outbreak last year. And 2016 has brought even more problems -- including allegations of wage theft, federal regulators determining it mistreated an employee, an executive charged in a cocaine bust, andslumping sales.

Chipotle's stock is down more than 42% over the last 12 months.

Restaurant analyst Howard Penney said Tuesday that Chipotle's stock could crash another 50%.

But Pershing argues Chipotle has "a strong brand, differentiated offering, enormous growth opportunity, and visionary leadership."

chipotle stock food safety

 

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Not them having their ARTPOP era  

As long as your not sticking it up your bung-hole, instead 


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