NEW YORK (TheStreet) -- Chipotle (CMG) - Get Chipotle Mexican Grill, Inc. Report is offering free soft drinks and iced tea to students with a valid I.D. for the month of September, the company announced on Monday.
The promotion is the fast-casual restaurant's "new way to try to win back customers following that series of food safety problems," Fox Business' Dagen McDowell said on "Mornings With Maria Bartiromo" on Tuesday.
After news of foodborne illness issues from Chipotle spread, sales dropped by about 50% in just one year, she noted.
Chipotle has rolled out a new customer rewards program to help regain its share of the restaurant market, introduced cheap alcoholic drinks at some locations, and offered a free burrito promotion, McDowell said.
But these small tokens of goodwill may not be enough to regain customers' trust.
"If people are not eating there because they're worried about getting some sort of really dangerous gastrointestinal problem, then I don't know if a cup of soda is going to really solve that," McDowell concluded.
Separately, 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 articles's author.
TheStreet Ratings team rates Chipotle Mexican Grill as a Hold with a ratings score of C. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
You can view the full analysis from the report here: CMG