Chipotle Rolls Out New Loyalty Plan
Chipotle Mexican Grill shares dipped early on Monday after the burrito chain announced that it is piloting its new “highly anticipated” loyalty program, Chipotle Rewards.
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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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
