Pershing Square Capital Management has kicked off the year on a positive note, with a strong start marked by strategic investment moves including the divestiture of their stake in Lowe's (NYSE: LOW ) and the addition of two new undisclosed investments. The firm's portfolio companies have shown robust performance, particularly Chipotle (NYSE: CMG ), which saw a 7% increase in same-store sales growth and raised its full-year guidance. Universal Music Group (AS: UMG ) reported an 8% organic revenue growth, while Alphabet (NASDAQ: GOOGL ) and Hilton also delivered solid earnings, with Alphabet showcasing its AI leadership and Hilton enjoying growth in RevPAR and net unit room count.
However, concerns were raised over a weakening low-end consumer and heightened industry competition affecting companies like Restaurant Brands and the broader economic environment. Key Takeaways Pershing Square sold its Lowe's position and made two new undisclosed investments. Chipotle raised its full-year same-store sales growth forecast, citing strong economic models and potential for international expansion.
Universal Music Group announced a €250 million cost savings program and a TikTok deal to protect artists from AI misuse. Alphabet demonstrated strong growth potential, particularly in AI-powered search responses. Hilton reported a 2% increase in RevPAR and a 5.
5% increase in net unit room count. Restaurant Brands International (NYSE: QSR ) saw positive results from investments but faces chall.
