Chipotle Mexican Grill has officially named Scott Boatwright as its permanent chief executive, effective immediately. Boatwright stepped into the role of interim CEO back in August following the resignation of Brian Niccol, who left to become CEO and chairman at Starbucks. Previously, Boatwright held the position of chief operating officer at Chipotle.
Chairman Scott Maw stated in a Monday announcement, 'We conducted a thorough and rigorous external search process that confirmed Boatwright is absolutely the best person to lead the next stage of growth at Chipotle.' He emphasized that the board is confident in Boatwright's ability to implement key strategies that position the company for ongoing success. In addition to his role at Chipotle, Boatwright is also a board member at Academy Sports and Outdoors.
Investors welcomed the news, as Chipotle shares saw a 0.8% increase in late-afternoon trading on Monday. The stock has bounced back impressively, rising 30% year-to-date. Truist Securities commented positively on the appointment. In a note to clients, analyst Jake Bartlett remarked, 'While menu innovation with seasonal offers, the growth of digital sales and improved marketing have contributed to Chipotle's sales growth and recovery post food-safety issues, we believe the primary driver has been improved operations, which Mr.
Boatwright is well-positioned to continue.' The company recently shared its third-quarter performance, which featured mixed results; adjusted per-share earnings exceeded Wall Street expectations, although revenue fell short. Chipotle has maintained its forecast for full-year comparable restaurant sales growth in the mid- to high-single-digit range. Boatwright elaborated on the company's momentum, stating, 'The momentum in the business has continued into the fourth quarter with accelerating transaction trends' during an earnings conference call in October..