Chipotle to Launch ‘Chiptopia’ Rewards Program

Chipotle Mexican Grill Inc.’s (NYSE: CMG) fall from grace has lasted for 10 months and, if anything, shows no signs of reviving without more help. To that end the company is launching a 3-month summer rewards program beginning Thursday, July 1.

Chipotle calls the program “Chiptopia,” and for the three months through the end of September customers can earn free rewards by stopping often at the company’s stores.

Here’s how the company explains it:

Chiptopia Summer Rewards offers three different status levels: Mild, Medium and Hot. Just four visits, with a qualifying purchase during each, earns Mild status and a free entrée. Someone who achieves the Hot level in all three months can earn up to nine free entrées over the course of the rewards program, plus a $240 “Catering for 20” Bonus Reward.

[nativounit]

There are a limited (but quite large) number of ways to earn rewards under the program. Customers who register for Chiptopia in July earn free chips and guacamole with their first entreé purchase of more than $6. Customers achieving Hot status in each of the three months earn catering for 20 people, a $240 value according to Chipotle.

Same-store sales plunged 30% in the first quarter of this year which the company attributed to the number of transactions. That means not as many customers are showing up for lunch, a snack, or dinner. The Chiptopia program is designed to turn that around by rewarding its most loyal customers, the ones who make multiple paid visits to a Chipotle store during the summer months.

The stock traded down about 1.3% in the noon hour Monday at $395.34 in a 52-week range of $384.77 to $758.61 (the stock’s all-time high). The consensus price target is $465.04 and the high target is $605. Chipotle stock has a steep hill to climb and analysts are not expecting the company to reach that prior peak anytime soon.

[wallst_email_signup]