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'My Chipotle' campaign set for May

DENVER Chipotle Mexican Grill Inc., which posted a 47-percent jump in first-quarter profit even as same-store guest traffic continued to slide, plans to debut a new advertising campaign in May to drive more customer visits.

The “My Chipotle” campaign will roll out in most of the major markets where the chain of 800 fast-casual restaurants operates. It will include radio, print, outdoor signage and a significant online component, Chipotle founder Steve Ells told investors during a conference call this week.

Chipotle has struggled of late against declining traffic trends, and most recently increased menu prices to help maintain unit-level margins and keep same-store sales positive. For the first quarter ended March 31, same-store sales rose 2.2 percent, aided by a 7-percent increase in the chain’s average check. Same-store traffic counts fell 4.5 percent, Chipotle reported.

Agreater push in marketing and advertising efforts is designed to reverse that negative trend. Much of Chipotle’s marketing efforts in its past 16 years have been word-of-mouth strategies and the new efforts are designed to tell the chain’s story to new and old customers, Ells said.

“My Chipotle is designed to help us engage directly with our loyal customers in a way we never have before,” he said.

Anew website, www.mychipotle.com, will be part of the promotion and will enable customers to upload photos, audio and write about why they like the Chipotle brand. The chain also is continuing with tests of new menu boards and additional product offerings in its Denver-area stores. Those efforts, which focus onlower-priced and smaller-portioned fare, began earlier this month.

Chipotle’s first-quarter net income totaled $25.4 million, or 78 cents per share, compared with $17.3 million, or 52 cents per share, in the same quarter a year earlier.

Latest-quarter revenue rose 16.1 percent to $354.5 million, and was driven by the opening of 26 new restaurants during the quarter.

Contact Dina Berta at [email protected].

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