NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill (CMG) were declining in mid-afternoon trading on Tuesday as two smaller investors called on the fast-casual chain to replace Chairman Steve Ells with an independent director, Reuters reports.
This comes after activist investor Bill Ackman recently took a stake in Chipotle. In early September, Ackman's Pershing Square disclosed a 9.9% stake.
Amalgamated Bank and CtW Investment said they filed a shareholder proposal together and are now focusing on Ells, who is the founder and co-CEO of the company, Reuters noted.
A vote on the proposal would not happen until the Denver-based company's annual meeting in 2017.
CtW had pressed investors to remove two long-time board members in April, but the attempt failed at the company's annual meeting in May.
Investors have become increasingly concerned about Chipotle's ability to recover its brand after several food-safety scandals, Reuters added.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strongest point has been its very decent return on equity which we feel should persist.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.