Chipotle Mexican Grill Inc. said Monday that founder Steve Ells will again become sole chief executive of the company following the resignation of co-CEO Monty Moran, effective immediately.
The move comes as the Denver-based 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.
Moran, who spent seven years leading the company, will also be stepping down from the board while 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.
