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Mike Mozart
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Each order of
Mexican chipotle grill
sends an assembly line into action – and that's what company management wants you to think about its approach to change.
The team of CEO Brian Niccol described his approach to updating the company because he arrived earlier in the year. The last example came Monday as
Chipotle
(CMG) announced the launch of a new loyalty program.
A clue that the company is targeting its communications to a wider audience than mere guests is the ad itself, which uses phrases such as "step process". She is clearly trying to convince spirit investors.
This is reminiscent of previous announcements of menu tests – for example, bacon – and hours and experimental offers. (We visited Manhattan's "test kitchen" earlier this year.) Even his new marketing campaign is reminiscent of tones and themes identified months ago in his television commercials.
The loyalty program, meanwhile, has been discussed for months. Meal purchases will give members points that can be used to make more meal purchases, starting with Phoenix, Kansas City (Kansas and Missouri) and Columbus, Ohio.
The company said it saw the opportunity to test ways to contact customers more often, negotiate rewards for more personalized marketing and more information on how their customers interact with Chipotle for delivery, pickup and meals in store.
In an email, a Chipotle spokesperson said the pilot would test ideas such as the methods used by customers to place loyalty orders – in-store or online, for example – and the most popular rewards. The specific timing of the national deployment would be determined next year, she said.
"When the loyalty program is launched, I think it will help us better understand how all these transactions interact with each other," Niccol said in a conference call in July. is available on Seeking Alha. "It's a new skill that we will build for the organization in the future."
Investors applauded just about everything the company's management did. The stock is up 55% this year. But there was some caution on Monday – although related to the evaluation, not the loyalty program.
Oppenheimer has a stock underperformance rating of $ 400 on stocks, which is about 11% lower than current levels. "Our analysis now takes into account the disadvantages of risk / return at 18 months," they wrote.
This story has been updated to include information from Chipotle's spokesperson.
Email David Marino-Nachison at [email protected]. Follow him to @marinonachison and follow Barron's Next to @barronsnext.
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