Shares of Chipotle Mexican Grill (CMG) rallied in morning trading after the company said co-chief executive officer Monty Moran would step down, leaving founder Steve Ells as the company’s sole CEO.

CHIPOTLE DROPS DUAL CEO STRUCTURE: Chipotle announced this morning that founder Steve Ells will take over as the company’s sole CEO following the resignation of co-CEO Monty Moran, effective immediately. Moran also stepped down from his board seat and will retire from Chipotle in 2017. Ells served as Chairman and CEO from 1993 until 2009 when he became co-CEO, a title he shared with Moran. Ells will remain chairman, despite pressure from activist investors Amalgamated Bank and CtW Investment Group to name an independent chairman “to help rehabilitate the burrito chain’s brand.” Neil Flanzraich, lead director of Chipotle’s board, commented in a statement that “Given the ongoing challenges facing the company, the board felt strongly that it was best for Steve to resume leadership of the company going forward.”

OTHER INITIATIVES: Chipotle also said this morning that Ells would pursue an employee incentive program tied closely to customer experience. The company also “recommitted” to the company’s mission to serve better ingredients. In Chipotle’s statement, Ells said that “Chipotle is based on a very simple idea: We start with great ingredients, prepare them using classic cooking techniques, and serve them in a way that allows people to get exactly what they want. Even though it’s a simple idea, operations have become over-complicated.”

WHAT’S NOTABLE: Last week, Ells said at the Barclays “Eat, Sleep, Play – It’s Not All Discretionary” Conference that sales have not recovered as much as previously expected from the burrito chain’s contamination crisis. While Ells noted that lines were “definitely back,” he admitted that they were not as long as they used to be. Additionally, Ells noted that Chipotle is “nervous” about hitting guidance. Chipotle previously forecast fiscal 2017 earnings per share of $10 and a comparable sales increase in the high single digits and said it “fully expected” gradually-improving trends to continue. Chipotle’s same-store sales have fallen for three consecutive quarters following two E. coli outbreaks last year that impacted its restaurants in 14 states. According to sources, The New York Post reported last week that the tension between Ells and Moran “has become so apparent that Ells has begun laying the groundwork to oust his pal and C-suite partner.”