Chipotle Mexican Grill Inc. (NYSE: CMG) shares dipped early on Monday after the burrito chain announced that it is piloting its new “highly anticipated” loyalty program, Chipotle Rewards. This is part of Chipotle’s ongoing efforts to drive digital innovation and make the brand more accessible. The points-based loyalty system is now live in three test markets.
The program is being tested in Phoenix, Arizona, Kansas City, Missouri, and Columbus, Ohio, ahead with a national launch, currently slated for 2019.
Under this new loyalty program, eligible customers in each of the three test markets can sign-up for Chipotle Rewards via the Chipotle app or on Chipotle.com. Those who enroll can earn 10 points for every $1 spent, with 1,250 points resulting in a free entrée. To drive even more digital orders, for a limited time customers can earn 15 points for every $1 spent in the app and online.
Following the recent launch of Chipotle’s direct delivery service, the company has seen steady growth in digital orders.
Curt Garner, chief digital and information officer at Chipotle, commented:
At Chipotle, we’ve been very focused on making our brand more accessible and growing love and loyalty among our customers. Now, with Chipotle Rewards, the more you Chipotle, the more you earn points towards free Chipotle.
Shares of Chipotle traded early Monday at $458.54, with a consensus analyst price target of $471.70 and a 52-week range of $247.52 to $530.68. Following the announcement, the stock was down 2% at $455.00 in early trading indications Monday.