Restaurant chain Chipotle Mexican Grill (CMG) has named Scott Boatwright as its new permanent CEO.
Boatwright had been serving as interim CEO of Chipotle after the company’s former top executive, Brian Niccol, departed in the summer to take the helm of coffee chain Starbucks (SBUX). Boatwright has worked at Chipotle since 2017.
He takes over as CEO of Chipotle as the company struggles with weak consumer demand following increases to its menu prices. Despite these challenges, Boatwright has declared that he wants to position the burrito chain as a “lifestyle brand” and double the company’s restaurant locations to 7,000.
A Restaurant Industry Veteran
Boatwright is a veteran of the U.S. restaurant industry, having spent 18 years with Arby’s Restaurant Group before joining Chipotle. He was named permanent CEO following “a thorough and rigorous external search process,” said Chipotle in a news release.
Boatwright’s appointment as CEO comes amid a number of executive changes at Chipotle after Niccol’s departure. In August, Chipotle named Adam Rymer as its chief financial officer (CFO), and named Rymer’s predecessor Jack Hartung as chief strategy officer.
Chipotle’s stock plunged when Niccol’s exit was announced, but it has since risen nearly 15%. Year-to-date, CMG stock is up 30%. The shares underwent a 50-for-1 split in June.
Is CMG Stock a Buy?
The stock of Chipotle Mexican Grill has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 16 Buy, seven Hold and no Sell recommendations assigned in the last three months. The average CMG price target of $65.16 implies 9.97% upside potential.
