Chipotle investors see continued growth

LONDON, Aug 15 (Reuters): Chipotle Mexican Grill's future may not be as bumpy as some shareholders fear upon the departure of CEO Brian Niccol, investors said on Wednesday.

The burrito chain lost almost $6 billion in stock market value on Tuesday after it announced that Niccol will depart at the end of this month to become CEO of Starbucks. But Chipotle's chief operating officer, Scott Boatwright, will serve as its interim CEO, and the investors said he will provide a steady hand.

During his tenure as COO, Boatwright along with Niccol oversaw improvements in the quality of the food at Chipotle's more than 3,000 restaurants, eliminating flavor and taste inconsistencies, helping to lift the chain's sales and profit.

"I have confidence they will continue to double down on the smart initiatives that are already well-entrenched inside the company," said Eric Clark, portfolio manager at Accuvest Global Advisors, which owns roughly $3.5 million in Chipotle shares.

During Boatwright's joint visits with Niccol to Chipotle locations, "Scott would say, 'Hey, show us how you make the guacamole,' and they would go, 'This is how I do it,'" Niccol said in a 2022 event hosted by the University of Chicago Booth School of Business. "The answer we were looking for was, 'This is how you do it at Chipotle.' . . . People like consistency."