Chipotle Mexican Grill Inc. announced Scott Boatwright as its permanent chief executive officer, effective immediately.
Boatwright had been serving as interim CEO since August, when Brian Niccol vacated the role to become CEO of Starbucks Corp. Boatwright was previously chief operating officer and chief restaurant officer at Chipotle, which he joined from Arby’s in 2017. The burrito chain said its board made the decision “after a robust and thorough process.”
Chipotle shares were little changed in New York trading. The stock has advanced 28% this year, slightly surpassing the gain of the S&P 500 Index.
Chipotle has outpaced many restaurant peers this year, reporting robust sales even as consumers eat out less. While McDonald’s Corp. and Starbucks Corp. have reported several quarters of same-store sales declines, Chipotle has consistently managed to attract diners.
As food prices have risen, the perceived value of fast-casual chains like Chipotle has improved relative to fast-food chains, where menus have been hit by price increases in recent years.
In the third quarter, the company reported growth in both transactions and average checks. That trend has “continued into the fourth quarter with accelerating transaction trends,” Boatwright said during the company’s most recent call with analysts.
Boatwright, along with Niccol, has helped to improve the efficiency and service times at Chipotle locations. The company has added separate burrito assembly lines for online orders to prevent restaurants from being overwhelmed.
In an interview last year, Boatwright spoke about how employee retention at Chipotle restaurants was improving amid softening retail demand and technology industry layoffs. He said the chain was trying to hire 15,000 workers ahead of its busy season that typically runs from March to May each year.
Boatwright said that because Chipotle was opening new stores, they were always hiring for hourly positions. “We are very well staffed for today’s volume but that volume is growing daily,” he said at the time. “You’re always chasing when you have a high-growth company.”
Chipotle expects to add as many as 345 new company-operated restaurants this year.
The Wall Street Journal earlier reported Boatwright’s appointment.
