
Chipotle (CMG) Stock Up, Launches Rewards Program
NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill (CMG) - Get Report are rising 1.3% to $393.84 in pre-market trading on Tuesday as the company will launch a temporary rewards program in an effort to bring back customers after several food crises.
The Denver-based burrito maker announced its "Chiptopia" loyalty program yesterday. The program will reward customers for the number of times they visit a restaurant each month.
The promotion will run from July to September, according to a company statement.
Chipotle has already given away coupons for millions of free burritos in an attempt to fill up empty stores after an E. coli outbreak and norovirus cases last year caused sales to plummet, Reuters noted.
"We created Chiptopia to reward our most loyal customers" Mark Crumpacker, chief creative and development officer at Chipotle, stated. "While Chiptopia Summer Rewards lasts just three months, we will be carefully listening to our customers and using what we learn as we consider the design of an ongoing rewards program."
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 article's author.
You can view the full analysis from the report here: CMG










