• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead

2

eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats

3

Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline

1

He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead

2

eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats

3

Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
RetailChipotle

Chipotle Is Making a Drastic Change to Its Leadership

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
December 12, 2016, 10:09 AM ET
Add Fortune on Google for similar content.

Chipotle Mexican Grill (CMG) has put an end to its co-CEO arrangement as it looks to emerge from the biggest crisis in the burrito chain’s history.

The company said on Monday that founder Steve Ells has become its sole CEO effective immediately and that Monty Moran, co-CEO since 2009, was leaving the company altogether early next year.

Under the rare co-CEO arrangement, Chipotle thrived for years, expanding quickly to become a 2,200-restaurant chain and a favorite of consumers for its focus on customizable burritos and natural ingredients. (Whole Foods Market (WFM) recently did away with its own co-CEO set-up too.)

But last year, Chipotle entered what remains the biggest crisis of its history: an E. Coli outbreak sickened dozens of customers in 14 states, sending sales plunging in each of the last four quarters, including a third-quarter comparable sales plunge of 21.9%, with little relief in sight. The drama has also erased its profitability as the company increased its marketing spending to get diners back, and added about 80 operating procedures to improve food safety. That has overwhelmed workers and caused higher employee turnover, which in turn has hurt service.

Chipotle shares have fallen by more than half since the outbreak last October but rose 4% on Monday on news of Moran’s departure.

“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. This will ensure that his high standards for the guest experience and his unyielding commitment to the company’s mission are top priorities,” said Neil Flanzraich, Lead Director of Chipotle’s board in a press release.

Ells, a trained chef, started Chipotle in 1993. He was CEO until 2009 when he became co-CEO with Moran.

And now as solo pilot, Ells will have to face the challenge of bringing customers back, satisfying an activist investor in Bill Ackman, the billionaire hedge fund manager who now owns 9.9% of Chipotle and is pushing for big changes, and re-motivate staff. He has also wants to improve the quality of Chipotle restaurants- last week, he told a Wall Street investor he thought only 50% of his restaurants deserved a good grade.

To that end, Chipotle said in its statement it would link employee incentives more closely to customer satisfaction. The company said it now pays starting employees above federal minimum wage with benefits like vacation time, paid sick leave, and tuition reimbursement to all employees.

“It’s incredibly important to me that we create an excellent dining experience in all of our restaurants. That starts with having great restaurant team,” Ells said.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Retail

Robinhood Markets logo is seen displayed on a smartphone screen.
InvestingRobinhood
Robinhood CFO details surging prediction market business as firm posts record revenue in Q2
By Jeff John RobertsJuly 29, 2026
3 hours ago
Costco’s $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
RetailCostco
Costco’s $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
By Sydney LakeJuly 29, 2026
11 hours ago
Exclusive: Rent the Runway cofounder Jenn Hyman is taking over IPO-bound Babylist as it nears $1 billion in revenue
C-SuiteMost Powerful Women
Exclusive: Rent the Runway cofounder Jenn Hyman is taking over IPO-bound Babylist as it nears $1 billion in revenue
By Emma HinchliffeJuly 29, 2026
12 hours ago
js
SuccessEntrepreneurs
‘We’re on top of every restock’: This 24-year-old has made over $4 million off his subscription-based reselling community
By Joshua HongJuly 29, 2026
19 hours ago
Photo of former CEO David Wenig
LaweBay
eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats
By The Associated Press and Leah WillinghamJuly 28, 2026
1 day ago
erling
Arts & EntertainmentJD Sports Fashion
The Erling Haaland boom: Norway’s ‘pop-up economy’ during the World Cup revealed in Visa data
By Catherina GioinoJuly 28, 2026
1 day ago

Most Popular

He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead
Success
He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead
By Preston ForeJuly 29, 2026
10 hours ago
eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats
Law
eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats
By The Associated Press and Leah WillinghamJuly 28, 2026
1 day ago
Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
Retail
Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
By Sydney LakeJuly 29, 2026
11 hours ago
Jamie Dimon says his stockbroker father taught him to invest with a 'brutally hard' childhood game
C-Suite
Jamie Dimon says his stockbroker father taught him to invest with a 'brutally hard' childhood game
By Sarah GlodekJuly 29, 2026
19 hours ago
Current price of oil as of July 29, 2026
Personal Finance
Current price of oil as of July 29, 2026
By Joseph HostetlerJuly 29, 2026
17 hours ago
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.