The formerly high-flying company’s fortunes are closely tied to those of billionaire William Ackman, whose Pershing Square Capital Management LP is its largest investor and has been the most significant agent for change at Chipotle.
Ackman’s 2016 bet on Chipotle has become a headache this year for the investor, who is seeking to avoid a third straight annual loss for his hedge fund.
Shares in Chipotle jumped 3.5 percent in early trading on Wednesday, but remain down roughly 25 percent so far this year. They are nowhere near their all-time high of more than $742 in July 2015.
Chipotle, which has been under considerable pressure from Ackman and other investors, said it is searching for a “new leader with demonstrated turnaround expertise” to replace Ells, who will stay on as executive chairman.
“Bringing in a new CEO is the right thing to do for all our stakeholders,” Ells said in a statement. “Simply put, we need to execute better to ensure our future success.”
Ackman told Reuters he fully supports Ells’ decision. “We remain as excited as ever about the future of the company,” he said.
more here:
https://www.reuters.com/article/us-chipotle-move-ceo/chipotle-seeks-turnaround-expert-to-replace-ells-as-ceo-idUSKBN1DT1UI?il=0