Chipotle Tumbles after Co-CEO Says He’s ‘Nervous’ About Turnaround

Chipotle Mexican Grill, Inc. (NYSE:CMG) plunged more than 6 percent on Tuesday after the company concerned about hitting the guidance due to deteriorating customer service. The burrito chain is still trying to recover from a widespread E. coli outbreak, but the efforts are hampered by deteriorating customer service experience, co-Chief Executive Officer Steve Ells said at a Barclays conference on Tuesday. He also showed concerns about the company’s ability to recover from the E. coli disaster and to hit 2017 sales it provided in October.

“I’m not satisfied with the rate of recovery,” Ells said during a Barclays Plc investment conference in New York. “I’m particularly not satisfied with the quality of experience in some of our restaurants.”

The stock fell as much as 7 percent to $368.32 in the early trading, the biggest decline since Oct.26. It was down 17 percent this year. He also said that Chipotle is taking a careful look at existing directors and considering candidates with expertise in marketing, crisis management and corporate governance.

What’s more, the company expects to make an announcement shortly about a new slate of board members, Ells said. Investors had criticized the board for their inexperience in the restaurant industry. “2016 has been the most challenging year in our history,” Ells said. “We obviously have a long way to go.”

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