Chipotle Mexican Grill Announces Scott Boatwright As CEO: Retail Stays Cautious

Chipotle Mexican Grill ($CMG) on Monday announced Scott Boatwright as the chief executive officer and a member of the board, effective immediately. Boatwright, who was named interim CEO in August, served as the chief operating officer, reporting directly to the company's CEO since 2017.

Before Chipotle, Boatwright spent 18 years with Arby's Restaurant Group in various leadership positions. His last role at the firm was senior vice president of operations, where he was responsible for the performance of over 1,700 Arby's restaurants in numerous states.

Boatwright currently serves on the board of directors of Academy Sports and Outdoors, Inc. and is a member of the National Restaurant Association's Fast Casual Industry Council, Chipotle said in a statement.

Chairman Scott Maw said the firm conducted a thorough and rigorous external search process for the selection of the CEO. “The board overwhelmingly believes Scott will deliver on the key strategies in place and position the company for continued success,” he said.

Despite the announcement, retail sentiment on Stocktwits continued to trend in the ‘neutral;’ territory (49/100).

Retail investors on Stocktwits expressed skepticism on the lack of stock movement following the news.

Late last month, the company reported its third-quarter earnings that failed to impress Wall Street.

Total revenue rose 13% year-over-year (YoY) to $2.79 billion during the quarter but fell short of an estimate of $2.82 billion. The rise in revenue was driven by new restaurant openings and a 6% increase in comparable restaurant sales due to higher transactions.

Adjusted earnings per share (EPS) came in at $0.27 compared to a Wall Street estimate of $0.25. Net income rose 24% YoY to $387.39 million during the quarter.

For the full-year, the company expects comparable restaurant sales growth in the mid to high-single digit range and anticipates 285 to 315 new company-operated restaurant openings with over 80% having a Chipotlane.

Shares of CMG have gained over 31% since the beginning of the year.

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