Chipotle Founder Says Company to Announce New Board Members

Chipotle Mexican Grill Inc. Co-Chief Executive Steve Ells told investors on Tuesday that the company plans to make an announcement soon about a new slate of board members.

The burrito chain has struggled after a series of disease outbreaks last year and has come under the scrutiny of activist shareholder William Ackman. Mr. Ackman has been actively looking to refresh its board, which is made up of board members who have served for years.

Mr. Ackman, whose Pershing Square Capital Management LP disclosed a 9.9% stake in Chipotle in September, has been seeking a say in the boardroom.

While Mr. Ells wouldn't say whether Mr. Ackman will get a board seat for himself or someone of his choosing, he acknowledged the criticism of the board, saying he understands the complaints about directors' tenure.

He said the company and Mr. Ackman agree on what needs to happen at Chipotle to improve sales. "We don't have any fundamental disagreements about the state of the business and what the opportunities are," he said during a Barclays investor conference.

Write to Julie Jargon at [e-mail]

(END) Dow Jones Newswires

December 06, 2016 09:35 ET (14:35 GMT)

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