Chipotle Drops Dual-CEO Model
December 12 2016 - 10:40AM
Dow Jones News
Chipotle Mexican Grill Inc. said Monday that founder Steve Ells
will be again become sole chief executive of the company following
the resignation of co-CEO Monty Moran, effective immediately.
The move comes as the fast-casual restaurant chain, once lauded
for its rapid growth, has struggled amid a string of food safety
crises.
"Given the ongoing challenges facing the company, the board felt
strongly that it was best for Steve to resume leadership of the
company going forward," Neil Flanzraich, lead director of the
board, said.
The move marks the second breakdown of a rare co-CEO model this
year. Whole Foods Market Inc. eliminated its dual-CEO leadership
structure last month leaving co-founder John Mackey the sole
CEO.
Mr. Moran, who spent seven years leading the company, will also
be stepping down from the board while Mr. Ells will remain
chairman, despite pressure from activist investors to name an
independent board chair.
Shares rose 1.9% to $376.83 during morning trading.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
December 12, 2016 10:25 ET (15:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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