An activist investor has gobbled up a stake in US restaurant group Chipotle Mexican Grill Inc (NYSE:CMG).
Bill Ackman's hedge fund Pershing Square Capital Management took a 9.9% interest in the casual dining chain, which has faced food safety concerns.
Chipotle welcomed the investment, but Ackman said the company was worth less than it should be and vowed to talk to its bosses.
It was linked to food poisoning outbreaks last year, including e.coli, norovirus and salmonella.
The company took action to improve its food safety regime and an e.coli outbreak was declared over in February this year.
Ackman has a track record of investing in restaurant chains, having taken stakes in McDonald’s (NYSE:MCD) and Burger King in the past.
He is also said to be invested in Restaurant Brands International (TSE:QSR).
Chipotle’s shares rose 4.9% to US$434.42 in early Wall Street trading.