CMG Chipotle Mexican Grill Inc

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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