Chanticleer Holdings, Inc. (NASDAQ:BURG) made an announcement today that boosted its stock by over 50%. In comparison to the company’s last announcement, which occurred on December 21, 2017 and was to announce the opening of another Little Big Burger location, the news resulted in less than a 10% difference to its stock.
I’ll give you two guesses to what could have caused this most recent stock jump for the company. It’s got nothing to do with cannabis, so that leaves our other big mover, the infamous and ambiguous blockchain. That’s right, Chanticleer Holdings, a company that operates and franchises fast-food restaurants, made the now-classic blockchain announcement and saw its stock price soar.
Chanticleer Holdings has signed a deal with Mobivity Holdings Corp. (OTCQB:MFON) to use its blockchain platform aimed at improving communication between commerce and customer across brands, called MobivityMind. Chanticleer Holdings plans to use MobivityMind to power its customer loyalty and rewards program, which it would like to move into the crypto-sphere. What this boils down to is that Chanticleer wants to reward its customers with a digital currency that can be used across all of the Chanticleer brands.
“Eating a burger is now a way to mine for cryptocoins!” said Dennis Becker, CEO of Mobivity, in a phrase that I’m going to use to define the start of the new year. And what a start to the year it is for Chanticleer Holdings. At the time of writing, the company’s stock is trading at $4.00, putting it up $1.39, or 53%, from the previous closing price of $2.61.
In all fairness to Chanticleer, incorporating blockchain into a customer loyalty program is actually a pretty good idea. It makes it easier for customers to use their points not just in different locations but also across the multiple brands, which, in a regular point system, wouldn’t normally happen. This improves customer relations and satisfaction, and makes for a marketer’s dream. One can’t help but wonder, though, the reasons behind Chanticleer’s decision. I’ll be the optimist here and say that it’s doing this to improve customer happiness, which will then benefit the company, rather than the company just looking to jump on the blockchain bandwagon.
Featured Image: twitter
