The CEO of Chipotle is planning a marketing blitz, closing up to 65 stores

(Reuters) – Chipotle Mexican Grill Inc (CMG.N) said Wednesday that the chain will close up to 65 underperforming restaurants and reorganize its marketing under the direction of Brian Niccol, but many questions remain unanswered about what to expect under the new leadership.

Chipotle 's stock price has risen by more than 80% since Niccol' s hiring announcement last February, while the company was focusing on how to do it. increase online sales.

Chipotle will add "in-app" delivery of its products to around 2,000 restaurants by the end of the year and will launch an expected loyalty program in 2019, leaders said at a news conference. call Wednesday.

Executives did not say if fast food dishes like quesadillas and nachos would be added to the menu, and they dismissed an issue on international plans, saying that they would focus on "aggressive growth" " in the USA.

Shares fell 3.1% to settle at $ 443 after opening hours, after little details were provided on how the besieged burrito maker would innovate its model. business and improve its digital service.

"There are key areas that they have not really addressed, including the international strategy," said Stephen Anderson, an badyst at Maxim Group.

"Also the allocation of capital, especially with regard to share buybacks and the potential discussion for a dividend, I always think it will happen, but it will probably take about a year or two", said Mr. Anderson.

Executives said the costs of the company's restructuring would bring the chain to between $ 115 million and $ 135 million in costs, including about $ 50 to $ 60 million in the second quarter. The chain will close 55 to 65 restaurants.

Chipotle also announced the launch of a customer loyalty program in 2019 and plans to offer 2 tacos with a drink as part of a "happy hour". The announced changes come as the burrito chain seeks to recover after a series of failures dragged on the mark.

After outbreaks of E. coli, salmonella and norovirus were linked to its restaurants in 2015, the company's share price dropped as diners withdrew and rival chains increased their numbers through offers wider and smart promotions.

While Chipotle has made a name for itself as a pioneer of "real" ingredients, critics of the fast-casual chain have complained that its menu offers have become obsolete.

Niccol, the former head of Yum Brands Inc. (YUM.NTaco Bell, who directed the popular "Doritos Locos Tacos" and Nacho Fries at $ 1 before joining Chipotle in March, is on track to bring a new style to the channel's menu. Earlier this month, the company announced that it is testing five new items, including quesadillas and nachos, in its New York test kitchen.

Analysts and investors expect Niccol to lead the company in a more modern direction, including through improved technology, menu expansion and eventuality. opening of the brand to franchising.

Analysts expect an average of 8.4% growth in Chipotle's retail sales in 2018, following growth of 15% in 2017 and a 13% drop in 2016, according to Thomson Reuters data.