Chipotle’s next boss has one job: Don’t change too much

The Mexican-inspired restaurant company is for now turning to Boatwright, its longtime operations head, to maintain a run of strong sales and profits that have helped Chipotle buck broad industry malaise. Boatwright steps into the top role on an interim basis after Brian Niccol, Chipotle’s chief executive officer since 2018, was tapped last week to run Starbucks.

Niccol’s hiring was cheered by Starbucks investors—and mourned by Chipotle’s, with its stock dropping 7.5% on the day of the announcement. Starbucks touted Niccol’s decades of restaurant experience and marketing skill, which helped turn around Chipotle and more than double the burrito chain’s annual sales between 2017 and 2023.

Chipotle had been riding high before Niccol’s surprise exit. The company in July said same-store sales grew about 11% in the quarter ended June 30, when Starbucks and other big chains reported traffic declines. Chipotle expects its same-store sales to increase at least 5% this year.

Niccol has largely been Chipotle’s public face as the Newport Beach, Calif.-based company moved past food-safety problems and rebuilt its brand. Behind the scenes, Niccol has been backed by a team of seasoned executives and operations specialists who are capable of carrying the torch at Chipotle, according to shareholders, analysts, former company officials and other restaurant industry executives.

“One of the things Brian is good at is surrounding himself with great people," said Meredith Sandland, CEO of Empower Delivery, a consulting firm. The former Taco Bell executive worked with Niccol before his time at Chipotle.

A Chipotle spokeswoman said the chain’s board is conducting an external CEO search and has hired a search firm as a matter of good governance. Chipotle said Boatwright wasn’t available for an interview.

Some shareholders and industry analysts said they would like Boatwright to stay in the job. The 51-year-old former Arby’s executive has decades of restaurant experience and was central to Chipotle’s efforts to resolve food-safety problems.

Federal officials implicated the company in at least five foodborne illness outbreaks between 2015 and 2018, with investigators finding that some workers weren’t following safety protocols, such as reporting to work when sick.

The fallout badly bruised Chipotle’s sales and its overall brand, which centered on fresh, natural ingredients that it advertised as a healthier alternative to fast food.

Steve Ells, Chipotle’s founder, in 2017 recruited Boatwright to become the chain’s chief restaurant officer. Boatwright at the time was nearly two decades into a career at Arby’s, helping the roast-beef sandwich chain navigate a turnaround and leadership change.

Boatwright has spent years working closely with restaurant managers, employees and franchisees, and is known for having an open-door policy, according to industry executives who have worked with him. At Arby’s, Boatwright was often dispatched to markets that needed operational help, said Melissa Strait, a former chief people officer at Arby’s who worked with Boatwright.

“He could go in there and, pretty quickly, figure out what was holding a market back," Strait said.

He also has a sense of humor. At an Arby’s franchisee convention years back, Boatwright participated in an eating contest featuring the chain’s Meat Mountain sandwich—turkey, ham, roast beef, chicken tenders and other ingredients piled between bread.

Boatwright’s early goal at Chipotle was to improve food safety while maintaining restaurants’ use of ingredients prepared fresh each morning, he said in a podcast interview last year. The chain needed more-consistent standards across its restaurants, he said, as well as leaders with the time and focus to help implement them.

“What we lacked was a level of sophistication with leadership development," Boatwright said on the “Future Ready Leadership" podcast. “It’s a recipe for disaster in a high-growth organization."

A company spokeswoman said Chipotle hasn’t experienced major food safety concerns in recent years. Its practices have earned industry recognition.

The company’s executive bench includes Chris Brandt, Chipotle’s marketing chief since 2018. Industry analysts have credited him with creating digital marketing campaigns that have helped pull in younger consumers.

Curt Garner, a Chipotle executive since 2015 who now leads technology, was recruited to the chain after helping to design the Starbucks app. Chipotle’s digital rewards program now has roughly 40 million users.

Chipotle’s shares have regained ground since their initial drop, and some shareholders said they are sticking with the chain.

“It’s never a one-man band," said Stephanie Link, chief investment strategist for the wealth-management firm Hightower. Link said her firm bought Chipotle shares last week, seeing a buying opportunity when the stock declined on the news of Niccol’s departure. “They have a good bench, even without Brian."

Restaurants are under growing pressure as consumers pare discretionary spending, and other chains anticipate a decline in same-store sales this year. Chipotle’s sales have held up despite several menu price increases in recent years, benefiting from loyal consumers who tend to be more affluent and health-conscious than the average restaurant patron.

The chain in recent months has been criticized over the size of its portions, with some consumers convinced that its bowls and burritos had become skimpy in the past year.

Chipotle said in July that it was retraining staff in some stores to be more generous with food portions. In recent weeks, some consumers have posted praise and photos of heaping bowls on social media.

The chain’s weekly foot traffic growth continued to outpace the fast-food and fast-casual industry as a whole over the first seven months of this year, according to location data from Placer.ai.

Mark Madeley, a Mexican-food fan in Houston, doesn’t want Chipotle to make big changes. He said he wants the chain’s leaders to keep staffing restaurants with friendly people who dish up filling meals.

“To me, the brand stands for fresh, quality ingredients, prepared to your liking," he said.

Write to Heather Haddon at heather.haddon@wsj.com