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McDonald’s, Chipotle Shares Gain On Loyalty Program Plans

Stock MarketsJun 22, 2021 11:40AM ET
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By Dhirendra Tripathi – Shares of McDonald’s (NYSE:MCD) and Chipotle Mexican Grill (NYSE:CMG) were up in the session underway so far on Tuesday on their plans for their respective loyalty programs.

McDonald’s was up 0.7% while Chipotle gained 1.5% as the two set out to retain the jump in customers in post-Covid times.

For McDonald’s, the July 8 launch of the company’s first-ever loyalty program in the U.S means it joins Restaurant Brands International Inc (NYSE:QSR)’ Popeyes and Yum! Brands Inc (NYSE:YUM)’ Taco Bell in having such incentives.

Loyalty programs tend to make people spend more while giving companies valuable insights about their consumer behavior.

According to CNBC, McDonald’s program will allow customers to earn 100 points for every dollar they spend. They can work toward 16 rewards options, split up into four different tiers. The easiest items, like hash browns or a cheeseburger, cost just 1,500 points to redeem. A Happy Meal or Big Mac will set members back 6,000 points.

While McDonald’s gets ready to launch its program, Chipotle announced an expansion of its existing scheme to offer more redemption options to members.

Wednesday onward, customers will get a new video game called Chipotle Race to Rewards Exchange. The interactive racing game, inspired by the recent resurgence of low-fi video game titles, will challenge players to earn game points and avoid obstacles for a chance to win a 2021 Tesla (NASDAQ:TSLA) Model 3 and other prizes.

McDonald’s, Chipotle Shares Gain On Loyalty Program Plans

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