×

Chipotle interviews for new board member hoping to win back investors

Chipotle Mexican Grill Inc.
Daniel Acker | Bloomberg | Getty Images

Chipotle Mexican Grill has begun looking for a new board member in hopes that it can placate investors and jump start the burrito chain's turnaround.

"We are interviewing for a new board member now and considering additional board changes to meet longer-term needs," Chris Arnold, a company spokesman, told Bloomberg.

The Denver-based Mexican chain has faced criticism from investors for having an insular board that lacked racial and gender diversity, which, according to CtW Investment Group, has hindered the brand from bouncing back after a series of foodborne illness outbreaks.

In April, CtW addressed Chipotle shareholders in a letter asking them to withhold support for the reelection of two directors during annual shareholders' meeting in May. While the directors remained part of the board, at least for another year, it appears Chipotle is hoping to gain back investor's trust by interviewing new members.

"We have been active in communicating with our shareholders and, as we generally do, are taking action based on their feedback," Arnold said, according to Bloomberg.

Despite attempts from the company to drum up foot traffic and sales with free-food promotions and a loyalty program, same-store sales declined 26.5 percent in the second-quarter. However, transactions fell 19 percent during the quarter, suggesting that much of the sales gains were due to the strong promotions.

Read the full report from Bloomberg.