Chipotle Mexican Grill Inc. (NYSE:CMG) shares rose on Wednesday, after the company launched the search for a new chief executive after announcing that its current chief executive, chairman and founder, Steve Ells will step down from his current roles and take on the new mantle of executive chairman.
Ells, who founded the company in 1993, and was appointed chairman in 2005, acknowledged that “we need to move faster to make improvements."
READ: Chipotle slumps ahead of Wednesday’s open after quarterly results disappoint
"Simply put, we need to execute better to ensure our future success."
The gourmet burrito chain has been struggling with food safety concerns from as far back as 2015.
The company has formed a search committee to launch a new CEO who has turnaround expertise as well as to help address the challenges the company is facing as well as improve execution, build customer trust and drive sales.
READ: Beleaguered burrito firm Chipotle Mexican Grill making health scare headlines again
Ells added: “Bringing in a new CEO is the right thing to do for all our stakeholders. It will allow me to focus on my strengths, which include bringing innovation to the way we source and prepare our food.”
Its shares were up 4.10% at US$297.84.