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Can Bill Ackman Duplicate Burger King Success With Chipotle?

After serving up Burger King to the public, is Bill Ackman's cooking up another success story at Chipotle Mexican Grill (CMG) ?

Ackman could be looking to repeat his successful stake in Burger King, which saw shares double in just two years after the Home of the Whopper was taken public again in 2012.

His hedge fund, Pershing Square, disclosed an option to buy nearly 9.9% of Chipotle's market cap late Tuesday, and shares climbed nearly 6% Wednesday on the news. While Ackman says he plans to meet with Chipotle executives, his activist plans are, so far, unclear.

Meanwhile, Chipotle investors can learn from Ackman's longstanding thesis on fast food, or what Pershing Square and others in the industry call quick-service restaurants, or QSRs. And one of the most consistent themes in this group is franchise expansion -- an area in which Chipotle has plenty of room to grow.

It isn't...


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