Chipotle Founder Steps Down as Chairman
07 March 2020 - 2:41AM
Dow Jones News
By Matt Grossman
Steve Ells, the founder of Chipotle Mexican Grill Inc., is
leaving the company after 27 years as part of its leadership, the
company said Friday.
Brian Niccol, the company's CEO, is replacing Mr. Ells as
chairman. Mr. Ells started the casual Mexican-food chain in 1993
and served as its CEO until 2017, when he became executive
chairman.
Under Mr. Ells' leadership, the company grew from a single shop
in Denver to a national brand with more than 2,600 restaurants and
83,000 workers. Chipotle was one of the first fast-casual
restaurants to emphasize organic and freshly prepared
ingredients.
Mr. Ells stepped down as CEO as the company struggled to retain
customers amid repeated food-safety scares and rising
competition.
Mr. Niccol became Chipotle's CEO in March 2018. He began his
career at Procter & Gamble Co. and later worked as an executive
at Yum Brands Inc., where he led a major rebranding for Taco
Bell.
In its most recent quarter, Chipotle reported same-store sales
grew by 13.4% from the prior year, topping expectations. On
February 19, the company's stock closed at $933.84, its
highest-ever close. Shares were down about 2%, at $710.48, in
morning trading on Friday.
"Brian has proven that he is absolutely the right person to lead
Chipotle forward and I've never been more confident about the
future of this great company," Mr. Ells said in prepared
remarks.
Chipotle said Neil Flanzraich will continue to serve as lead
independent director and that board members Matthew Paull and Paul
Cappuccio, won't stand for reelection at its annual meeting this
year.
--Chris Wack contributed to this article.
(END) Dow Jones Newswires
March 06, 2020 10:26 ET (15:26 GMT)
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