Denver-based Chipotle to close at least 55 locations as part of restructuring – FOX31 Denver
DENVER — More big changes are coming to fast-casual chain Chipotle.
During a call with investors Wednesday, the Denver-based company said it plans to close at least 55 locations, according to MarketWatch. About half of the closures will happen within the next month.
The closures are part of a larger restructuring of the chain which is expected to cost between $115 million and $130 million.
Chipotle also said Wednesday that it would be launching a new customer rewards program in 2019, according to Bloomberg.
Additionally, the Chipotle app will be improved to allow customers to get food delivered and to pre-order meals that can be picked up in designated areas inside restaurants.
The company’s stock has been climbing steadily since dropping to about $251 in February. The price was $457 at close Wednesday.
However, shares dropped during after-hours trading following Wednesday’s call.
The company announced last month it would be relocating its worldwide headquarters from Denver to Newport Beach, California, despite having recently secured a 15-year lease for five floors of a high-rise office tower in Colorado’s capital.
The changes are being spearheaded by CEO Brian Niccol, who took over the chain in March. He came to Chipotle from Taco Bell, which is also headquartered in Newport Beach.