It’s been over seven months since I last talked about Chipotle.
After years of news flashes of Chipotle food making people sick, Chipotle hired a new CEO, Brian Niccol earlier this year. At Taco Bell, Niccol was known for food menu innovation as well as driving technological advancements to the customer ordering process.
However, Niccol has something up his sleeves. Digital sales grew by 33% and delivery sales were up 300% in the second quarter. Another way to put this in perspective is online orders were $17 each vs. in store orders of $12. Niccol is hoping that more and more customers will skip other eateries and just order their food at Chipotle.
Shares of Chipotle Mexican Grill now stand at a one-year high and the price is up about 46% this year. CEO Brian Niccol has been running Chipotle for just over a year and it appears the tricks up his sleeve are working.
On Tuesday, Brian unleashed another trick he had in his sleeve, a loyalty program. If I didn’t make it apparent in my previous post, I love Chipotle, so much that I signed up for the loyalty as soon as I heard about it.
A loyalty program’s main purpose is a cost-effective means to make more money from current customers by giving those customers reasons to come back and purchase more. In this case, you don’t even have to come back, just order it on your phone and have it delivered right to you via Doordash.
I anticipate the loyalty program to boost revenue and the stock price. Thus, the chart suggests price can continue to move higher at least to the $700 level.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.