Today, Chipotle Mexican Grill (CMG) launched its loyalty program, Chipotle Rewards, on a national level. To make the program more attractive, Chipotle announced it would give away $250,000 per day to 25,000 Chipotle customers from March 12 to March 15. Chipotle has partnered with PayPal’s Venmo, a mobile payment service provider, for both the campaigns.
Customers can sign up using the Chipotle app or through its website at Chipotle.com/Rewards. Customers will earn ten points for every $1 spent either in the restaurant or online. After reaching 1,250 points, the customer receives a free entrée. The company also offers extra-points days, which would aid customers in accumulating points more quickly. On the first purchase, a member would receive free chips and guacamole.
Chipotle members can also win anywhere between $1 to $500 by submitting their phone number, which is associated with their Venmo account, to ChipotleRewardMe.com.
Chipotle’s chief technology officer, Curt Garner, stated, “Similar to how we build restaurants where people live and work, we want to have a presence in all of the places our customers spend time digitally. Chipotle Rewards is another access point for consumers; a way for guests to engage with our promise of real ingredients prepared fresh daily and a way for us to say thank you for joining our mission of cultivating a better world.”
The launch of the new loyalty program appears to have increased investors’ confidence. Today, Chipotle stock hit a new 52-week high of $635.60 and was trading at $632.65 at 2:45 PM EST, which represents a rise of 2.6% from its previous day’s closing price.
Chipotle has returned 42.9% YTD as of March 11. During the same period, Shake Shack (SHAK) and McDonald’s (MCD) have returned 15.9% and 2.0%, respectively. The Consumer Discretionary Select Sector SPDR ETF (XLY), which invests ~8.3% of its holdings in restaurant and travel companies, has returned 11.0% YTD.