Chipotle hints at shakeup amid tension between executives

There’s more simmering at Chipotle Mexican Grill than a pot of beans.

The tension between co-chief executives Steven Ells and Monty Moran has become so obvious that Ells has begun laying the groundwork to oust his pal and C-suite partner, sources with knowledge of the situation told The Post.

The former college buddies have run the burrito chain together for 11 years. But they have been unable to get it back on track following several 2015 food-borne illness cases that  chased away customers.

With the ills of the chain splitting the friends, the company has hired an executive search firm to find a chief operating officer, sources said, a position that has not existed since Moran was promoted out of it, to co-CEO, in 2009.

“This is Steve Ells’ company, not Monty’s, and I’m sure he is fighting for his job,” said one source familiar with the executive suite tussle. Ells founded the chain 23 years ago.

Another person close to the duo said that Moran is likely the “scapegoat” for the company’s problems, noting that no one in top management was asked to leave or resign after the company’s spectacular fall from foodie darling to train wreck.

“Our management team is unchanged,” said Chipotle spokesman Chris Arnold.

Chipotle shares are off 35 percent in the past year, including a 7.6 decline on Tuesday, to $366.37, after Ells said he was looking to refresh the board.

The recent food crisis, which shattered Chipotle’s reputation and cost it roughly $5 billion in market value, has taken a toll, fraying the relationship between the two executives, say sources.

In recent weeks, Moran has been absent from investor meetings at which Ells and other top executives have been present, raising speculation that Moran is being sidelined, particularly since activist investor Bill Ackman of Pershing Square took a 9.9 percent stake in September.

On Tuesday, Ells spoke at a Barclays consumer retail conference sans Moran.

The Chipotle spokesman downplayed the significance of Moran not being at the conference, saying the corporate lineup at events varies from among a handful of executives.

At the conference, Ells said about half of the company’s 2,000-plus restaurants would be graded “C, D, or F” by the company’s own internal grading system, because they delivered a poor restaurant experience, due in part to high employee turnover.

“We are not offering the necessary guest experience,” Ells said. “We took our eye off the ball on the customer service side.” Specifically, soda stations are “sloppy,” dining areas are dirty and lines move a lot slower.

Ells said he is “nervous” about hitting the company’s financial guidance for the year.

“They need to do something besides recruiting friends and family,” said Derrick Wortes, director of equity strategies for CtW Investment, a persistent critic of the chain.

Ells said he was on the same page as Ackman as its pertains to making changes at the chain.

Still, Ackman’s hedge fund is taking a hit. Pershing was down roughly 2 percent on its Chipotle stake on Monday.

After Tuesday’s debacle, Pershing was down 10 percent.