Current Events in February 2019

Chrysler (FCA US LLC) is recalling an estimated 573,876 heavy-duty trucks in the U.S.

A specific steering-linkage configuration on certain vehicles may separate over time, resulting in a loss of steering.

The company says it is aware of one potentially related injury and eight potentially related accidents.

The recall includes model-year 2013-2017 Ram 3500 pickups and model-year 2014-2017 Ram 2500 pickups and 3500 chassis cabs.

In addition, an estimated 62,734 vehicles in Canada, 17,682 in Mexico and 5,837 in certain markets outside the NAFTA region may be recalled.

What to do

Chrysler will notify owners when they may schedule service.

Owners with questions or concerns may call Chrysler at (800) 853-1403, or go online at recalls.mopar.com to determine if their vehicles are being recalled.

Over the past year, Toyota, Kia, and Hyundai have all touted “software updates” as the answer to fixing defective cars under open recall, and Tesla has long promoted its vision of the car as a “sophisticated computer on wheels.”

In fact, most cars are essentially already computers on wheels, experts say, with increasingly sophisticated technology to go with it. But cybersecurity hasn’t kept up with the developments, according to new reporting by automotive engineers and cybersecurity experts.

Synopsys, a cybersecurity firm, teamed up with the Society of Automotive Engineers, the organization that represents people who work as auto engineers in the United States, to interview 593 industry professionals.

According to their new report, 52 percent of the auto engineers interviewed say that they are aware of “potential harm to drivers of vehicles because of insecure automotive technologies.”

Raising those concerns with higher-ups apparently isn’t an option. Another 69 percent of the engineers polled said they didn’t feel “empowered enough” to tell their bosses about the safety problems. And the majority of engineers polled -- 83 percent -- said that cybersecurity has not kept up with evolving technology in the industry.

“Software in the automotive supply chain presents a major risk,” Synopsys concludes.

Consumer safety groups have previously raised concerns that driverless cars in particular may be vulnerable to hacking. And in the United Kingdom, hackers have already successfully stolen both Tesla and Ford vehicles by manipulating the keyless entry systems. The latter company recently unleashed its driverless Fusion vehicles on the road in Miami.

Smart home devices

If thoughts of a car that is remotely controlled by hackers has sent you running back inside, keep in mind that hackers are also trying to access your household appliances.  

A new study by the firm NetScout found that hackers typically try to go after “smart” household devices within the first five minutes that they are online because that is when they are still programmed with the factory passwords and usernames.

"Alarmingly, users now have less than 5 minutes from the point of install to change the factory settings,” Matt Bing, an analyst with NetScout, reportedly said.

Once consumers reprogram the devices, the risk of hacking goes down somewhat, but not entirely.

Last month, hackers who go by the names Giraffe and j3ws3r broke into different strangers’ Chromecast TVs and displayed a message on the screens urging the strangers to follow the comedian PewDiePie on YouTube.

In the future, cybersecurity experts predict that hackers will also break into smart thermometers to demand Bitcoin ransoms from consumers.

Are you commuting in a Tesla during the polar vortex? Be prepared. A new study by the American Automobile Association (AAA) found that cold temperatures can temporarily reduce the range of electric car batteries by 41 percent.

To compare how the batteries performed in extreme temperatures, both hot and cold, the organization evaluated five vehicles: the 2018 BMW i3s, Chevrolet Bolts and Nissan Leafs and the 2017 Tesla Model S 75Ds  and Volkswagen e-Golfs.

In 20-degree weather, the average driving range dropped by 12 percent -- but only when the car’s heater was not used, an unlikely scenario for people driving home in freezing temperatures. When interior heaters were used, the range dropped by an average of 41 percent.

Hotter weather, by contrast, did not appear to have as dramatic of an effect. Researchers said that the battery range dropped by 17 percent with the interior air conditioners running in 95 degrees.

Cold-weather drivers urged not dwell on limitations

AAA researchers say that people who live in cold areas shouldn’t be deterred from buying an electric vehicle. They just have to be prepared.

“As long as drivers understand that there are limitations when operating electric vehicles in more extreme climates, they are less likely to be caught off guard by an unexpected drop in driving range," AAA Automotive Engineering Director Greg Brannon said in a statement.

The findings may have taken some drivers by surprise. Elon Musk has previously downplayed concerns that cold weather reduces battery power.

“So what’s the story I hear about the 45% battery power loss in cold weather conditions?” a fan tweeted at him last December. “Has to be true since most all batteries lose some power in Canadian cold weather situation.”

Musk responded that Tesla batteries only lose 10 percent of their range in cold weather, no different than what would happen in a traffic jam.

“As the battery warms up, almost all of that is recovered,” Musk claimed. “There is a roughly 10% range loss for cabin heating. Cabin heating impact on range is higher in slow traffic, but range is also higher in slow traffic.”

A bankruptcy judge in New York has brought the Sears saga to an end, ruling that chairman and former CEO Eddie Lampert’s bid to keep the retailer alive -- accepted by the company on January 17 -- is approved.

Lampert’s offer of $5.2 billion for 425 stores was seen as a way to keep Sears in business while saving at least 45,000 jobs. But the deal quickly faced a legal challenge from the company’s unsecured creditors -- including manufacturers that had provided inventory and landlords who were owed back rent.

These creditors told Judge Robert Drain that they would benefit more if the bankrupt company was forced to liquidate and its assets sold at auction. The hearing went on for several days and, at one point, entered the political realm when Sen. Elizabeth Warren (D-Mass.) voiced objections to Lampert taking control of the company.

While Lampert promoted the job-preserving aspects of his buyout plan, Warren voiced skepticism that his rescue plan would be that beneficial for employees, accusing him of “slashing jobs” during his tenure as Sears CEO.

"If your offer is accepted and approved, Sears will remain open and tens of thousands of American workers will keep their jobs in the short term," Warren wrote in a letter to Lampert. "But I am concerned that under your leadership, Sears may continue to struggle and employees will continue to face uncertainty and anxiety over their future employment and ongoing risks to their benefits and economic security."

Alleged fraudulent activities

Warren also called attention to the suit filed by unsecured creditors to block the sale to Lampert, noting that their 570-page motion alleged fraudulent activities by Lampert and his hedge fund during his tenure as chairman and CEO of Sears.

The creditors got their day in court earlier this week, making one final appeal to the judge to not grant control of the retailer to Lampert and ESL Investments, his hedge fund. They argued that Lampert’s management of the company is one reason it is bankrupt.

In a filing last week, Lampert accused Sears’ unsecured creditors of engaging in efforts intended to “poison the well” against ESL with "page after page of its pleadings with smears and false narratives that are completely irrelevant" to his potential Sears’ takeover.

In the end, Judge Drain sided with Lampert, whose firm will take control of Sears’ remaining stores and assets.

Almost two weeks after Apple disabled Group FaceTime after an eavesdropping bug was spotted by users, the tech giant has released an update that fixes the flaw.

On Thursday, Apple released iOS 12.1.4 -- an update that fixes a “logic issue” in Group FaceTime with “improved state management,” according to release notes. The update is available for the iPhone 5S and later, iPad Air and later, and iPod Touch 6th generation.

Apple's System Status page notes that Group FaceTime service has been fully restored.

"Today's software update fixes the security bug in Group FaceTime. We again apologize to our customers and we thank them for their patience," an Apple spokesperson said in a statement. "In addition to addressing the bug that was reported, our team conducted a thorough security audit of the FaceTime service and made additional updates to both the FaceTime app and server to improve security.”

Slow response to bug

Last week, Apple apologized to users who were affected by a bug that allowed iPhone users to call another device via the FaceTime video chat service and hear the person on the other end before the recipient had accepted the call.

In its apology, the company sought to address criticism over its lag time in informing consumers of the privacy vulnerability. The bug was originally reported to Apple by a 14-year-old boy more than a week prior to its appearance in the media.

The company didn’t appear to address the bug until after it became public information due to the fact that the family of the teenager had trouble getting in contact with Apple. It wasn’t until the flaw was discovered by other users and went viral on social media that Apple turned off the feature and issued the following statement:

"We want to assure our customers that as soon as our engineering team became aware of the details necessary to reproduce the bug, they quickly disabled Group FaceTime and began work on the fix," the company said. “We take the security of our products extremely seriously and we are committed to continuing to earn the trust Apple customers place in us.”

Apple added that it’s “committed to improving the process by which we receive and escalate these reports.” The company said on Thursday that it will be contributing money toward the education of the boy who spotted and reported the bug before it went viral, but it didn't reveal how much the reward would be.

Food and Drug Administration Commissioner Scott Gottlieb has reportedly questioned whether or not Juul and Marlboro-maker Altria are truly committed to combating the rise in teen vaping. Gottlieb has asked to talk with the CEOs of these companies about "public statements that seem inconsistent" with the vows they made last year to curb youth use of e-cigarettes.

Gottlieb once again threatened to remove e-cigarettes from the market entirely if youth use continues to rise.

The FDA has previously called the alarming surge in teen vaping an “epidemic.” From 2017 to 2018, there was a 78 percent increase in current e-cigarette use among high school students and a 48 percent increase among middle school students, according to the 2018 National Youth Tobacco Survey.

“If youth use goes up 40 percent or 50 percent this year, we’re going to be having a very different discussion come this summer or fall,” Gottlieb said in an interview with Bloomberg.

Accused of backing off plan

In September, Gottlieb ordered the five largest e-cigarette manufacturers to submit their proposed plans for reducing use of e-cigarettes among minors.

Altria, Juul Labs, and other e-cigarette makers have all maintained that they fully support efforts to reduce youth access to e-cigarettes. In November, Juul said that it would halt sales of many of its flavored e-cig pods in retail stores, as fruity flavors have been shown to appeal to underage users.

Not long after these promises were made, Juul announced that it made a $12.8 billion deal with Altria, the parent company of Philip Morris USA and makers of Marlboro cigarettes. Altria said it planned to use its distribution experience to get Juul into more stores.

Questioning commitments

In an interview with CNBC on Thursday, Gottlieb stated that he’s "concerned."

"Did something change? Do they have new data? Do they have a new understanding? Because they just made a very big commitment to support the expansion of pod-based products, which they said contributes to the youth epidemic."

Altria said it still shares Gottlieb’s belief that "underage vaping has to be addressed” and that it’s still "committed to being part of the solution.”

"We look forward to meeting with the commissioner," Altria spokesman Steve Callahan told CNBC.

In December, Gottlieb expressed similar concerns over the lack of action from e-cig makers to curb teen use of their products. Gottlieb said he would be contacting e-cigarette makers “to meet to discuss commitments they made last month, and why some are changing course.”

“There’s no reason manufacturers must wait for [FDA] to more forcefully address the epidemic. Yet some already appear to back away from commitments made to FDA and the public,” Gottlieb tweeted.

Just days after TechCrunch reported that a number of popular iPhone apps are recording users’ screens without their knowledge, Apple has sent a warning to developers threatening “immediate action” if they don’t remove the software that enables them to record user activity.

Apps that don’t remove the technology or start informing users that their activity is being recorded could risk being banned from the app store, the tech giant warned.

“App Store Review Guidelines require that apps request explicit user consent and provide a clear visual indication when recording, logging, or otherwise making a record of user activity,” the company told TechCrunch.

Earlier this week, the tech website released the results of an investigation conducted with mobile security blog The App Analyst. The investigation revealed that companies including Air Canada, Hollister, Hotels.com, Abercrombie & Fitch, and Expedia are “recording every tap and swipe” that users make in their iOS apps and sending the information back to the app developers.

Use of a digital analytics tool

The apps named are able to record user activity using Glassbox, a customer experience analytics firm that allows developers to embed "session replay" technology into their apps. This enables developers to record users’ screens and play them back to glean information on how people use the app.

“Since this data is often sent back to Glassbox servers, I wouldn’t be shocked if they have already had instances of them capturing sensitive banking information and passwords,” The App Analyst told TechCrunch.

In response to these findings, Apple reportedly reached out to the developers and threatened to pull the apps if they don’t cease these privacy-violating practices. Recording users screens or actions without informing them violates Apple’s App Store Review Guidelines, a spokesperson for the company said.

Apple gave the app developers a deadline of 24 hours to remove the code that allows them to record screen activity.

Potentially exposing sensitive data

In response to the report, Glassbox maintained that its software is intended to be used to spot potential bugs and improve overall user experience. A spokesperson for the company told Fortune that it’s not “spying on consumers.” Rather, it’s providing customers with “tools that record and analyze user activity on websites and apps.”

However, the App Analyst found that Air Canada, for example, wasn’t adequately masking sensitive information.

“While there may be value in documenting user activity through screenshots, there is also a large amount of risk that the screenshots may capture sensitive data. Air Canada has attempted to mitigate this risk by configuring black boxes to cover sensitive fields. However this attempt has failed, potentially condemning a user’s sensitive data to residing in various screenshots stored by Air Canada.”

It was a banner year for the Transportation and Safety Administration (TSA) in 2018. More than 800 million travelers and airline crew members passed through TSA screening. While those metrics are great to wave around, there’s another record-breaking metric within that 800 million that could raise some eyebrows.

In its review of 2018, the TSA reports that it found an average of nearly 12 firearms every day in security checks -- 4,239 in all.

“Throughout the year, TSA officers demonstrated great professionalism, dedication, integrity and remained committed to the mission to secure you – the traveling public. Thanks to their vigilance and skills, TSA officers intercepted a record number of firearms in 2018,” the agency wrote.

Most of the firearms were discovered in carry-ons at checkpoints across the U.S. -- 86 percent of those loaded with ammunition, and 33 percent with a round of ammo already chambered.

Airports on alert

It’s not exactly a championship ring that airport employees would be proud to wear, but TSA agents at Atlanta-Hartsfield -- the world’s busiest airport -- discovered 298 firearms in 2018, more than any other U.S. hub and up 53 from 2017.

The Top 10 airports seizing the most firearms are as follows:

1. Hartsfield-Jackson Atlanta International Airport (ATL): 298 – an increase of 53 compared to 2017 (253 loaded);

2. Dallas/Fort Worth International Airport (DFW): 219 (193 loaded);

3. Phoenix Sky Harbor International Airport (PHX): 129 (120 loaded);

4. Denver International Airport (DEN): 126 (95 loaded);

5. Orlando International Airport (MCO): 123 (112 loaded);

6. George Bush Intercontinental Airport (IAH): 117 – a decrease of 25 firearms compared to 2017 (115 loaded);

7. Fort Lauderdale-Hollywood International Airport (FLL): 96 (80 loaded);

8. Austin-Bergstrom International Airport (AUS): 93 (76 loaded);

9. Dallas Love Field Airport (DAL): 89 (83 loaded);

10. Nashville International Airport (BNA): 86 (80 loaded).

Along with firearms, the TSA hauled in a bevy of other prohibited items, including smoke grenades, lighter fluid, fireworks, knife combs, scissors (longer than 4 inches), miniature Louisville Slugger baseball bats, and mortar shell replicas.

Fake or not, those mortar shells brought baggage screening to a screaming halt until an explosives specialist could examine the shells and give the all-clear.

“Anything resembling an explosive item is prohibited in carry-on and checked bags,” the TSA’s Jay Wagner reminds travelers. “If you are not sure if an item is allowed in your bag, check out our What Can I Bring tool, snap a photo and Tweet or Facebook Message us, call us at (866) 289-9673, or shoot us an email (pun intended).”

Consumers who have been priced out of the housing market, and those who just prefer to rent, are facing higher costs.

In its 2019 Rent Report, Apartment Guide reports the average rent is up 4.2 percent in the last 12 months. A big driver of the increase is an increase in demand for affordable housing, as home ownership has leveled off.

The report makes calculations based on the costs of a studio, one-bedroom, and two-bedroom apartment. It also makes adjustments for different geographic locations within the U.S.

Among the report’s significant findings -- the Northeast has the highest average rents in the U.S., with the average two-bedroom apartment going for more than $3,000 a month. While the average rent is up on an annual basis, it’s down slightly from September’s peak.

You can get the best deal on an apartment in the South. The average rent has risen there in the last 12 months, but not by much. The next-smallest increase in rent took place in Midwestern markets.

Biggest increase in Newark

Breaking down the top 100 housing markets, the biggest annual increase in rent occurred in Newark, N.J., where rents went up more than 17 percent during 2018. On the other end of the scale, rents actually went down in New Orleans, falling 11.4 percent.

Rising rent has been a growing problem because so many people are unable to purchase homes. Rising home prices and a steady increase in mortgage rates have made more homes in more markets unaffordable.

While construction of new apartments has increased in recent months, it hasn’t been enough to keep up with the demand, which has served to push rents higher.

Rent-burdened

A 2018 report by the Pew Charitable Trust found that increases in rent have pushed more people into a classification called “rent-burdened.” That’s defined as a household spending 30 percent or more of its monthly income on rent.

These households will typically find it much more difficult to transition to homeownership and tend to be more “financially fragile.”

In the wake of the housing crash, mortgage lenders dramatically increased their lending standards, meaning fewer consumers could qualify for a mortgage to purchase a home. That kept more consumers in the rental market, dramatically raising rents in most areas.

Mortgage standards have been relaxed a bit, but there are fewer homes to buy because home builders have scaled back their production over the last decade. That means some families that might be able to afford a home continue to rent.

Gasoline prices rose slightly over the last week but remain remarkably stable amid fluctuating oil prices.

The AAA Fuel Gauge Survey shows the national average price of regular gasoline is $2.28 a gallon, up two cents over the last seven days. Prices have risen only five cents a gallon over the last month.

The average price of premium gas is $2.86 a gallon, two cents more than last week. The average price of diesel fuel is $2.92 a gallon, the same as last Friday.

The numbers on fuel supplies from the Energy Information Administration (EIA) have been up and down since early January, making it difficult to get a fix of the state of the market. U.S. oil production has risen sharply in 2019, but gasoline demand has been up one week and down the next.

Two weeks ago, gasoline demand was at mid-summer levels. But the EIA reports that demand went down again last week, heading off supply problems that can cause gasoline prices to spike. Despite increases in U.S. production, oil prices continue to creep higher. OPEC has pledged to cut production while the U.S. has imposed sanctions on oil from Venezuela.

“In the weeks ahead, rising crude prices will likely increase pump prices for motorists across the country since the price per barrel of crude comprises approximately 50 percent of the cost consumers pay at the pump,” AAA said in its latest market update.

Some states have seen sharp price hikes in the last week. The average price is up 20 cents a gallon in Michigan and is 17 cents a gallon higher in Ohio.

The states with the most expensive regular gas

These states currently have the highest prices for regular gas, according to the AAA Fuel Gauge Survey:

• Hawaii ($3.26)

• California ($3.26)

• Washington ($2.87)

• Alaska ($2.86)

• Nevada ($2.85)

• Oregon ($2.76)

• Pennsylvania ($2.49)

• New York ($2.48)

• Arizona ($2.46)

• Connecticut ($2.46)

The states with the cheapest regular gas

The survey found these states currently have the lowest prices for regular gas:

• Missouri ($1.93)

• Arkansas ($1.95)

• Oklahoma ($1.96)

• Alabama ($1.97)

• Mississippi ($1.97)

• Texas ($1.98)

• Kansas ($1.99)

• South Carolina ($1.99)

• Louisiana ($2.00)

• Tennessee ($2.04)

Two years into his presidency, President Donald Trump is still finding Obama-era regulations to overturn. The latest dismantling targets regulations on payday lenders.

The Consumer Financial Protection Bureau (CFPB) on Wednesday announced a proposal to roll back regulations, implemented in 2017, that required lenders to put the brakes on issuing cash advances to borrowers with unpaid loans.

The payday loan industry makes money from issuing high-interest, short-term loans to people who need fast cash.

While the loans are tempting to people who have fallen on hard times or who have bad credit, experts say that they can spark a dangerous cycle. Consumers who can’t afford the high interest often take out more loans to make ends meet.  Nearly half of all payday loans issued to consumers are part of a sequence of at least 10 consecutive loans, according to CFPB data.

Payday loans and spiraling debt

The Obama-era regulations stipulated that lenders verify that borrowers can meet their basic living expenses before the borrowers are issued a consecutive loan. But current CFPB director Kathleen Kraninger says the “ability to repay” stipulation and others were backed by “insufficient evidence.”

Independent experts, however, say there’s plenty of evidence that issuing repeated loans to consumers is harmful in the long run.

“Payday loans can lead to expensive debt spirals where consumers have to roll over debt again and again when they can't afford repayment,” Liz Weston, a financial columnist with the site Nerdwallet, said in a statement.

“People looking for short-term loans should consider alternatives like payday advances through their employer, a payday alternative loan from a credit union, or emergency assistance from charities,” she advises.

The payday loan industry is illegal in more than 20 states, but it is still thriving. Americans borrowed $29 billion in 2017 and paid $5 billion in fees.

The student loan debt crisis, with graduates borrowing tens of thousands of dollars for a bachelor’s degree, isn’t going away. Total student loan balances now exceed $1.5 trillion with seven out of ten recent college graduates owing an average of more than $37,000.

The nation’s employers may have contributed to this situation by universally adopting hiring practices requiring a four-year degree, thereby forcing young people to spend money they don’t have on ever-more-expensive higher education.

Now, some employers have decided to help. More companies have introduced benefits that include help paying off student loans. Unum Group, an insurance company, recently introduced a benefit that allows employees to trade paid time off (PTO) for payments against their student loan balance. The Student Debt Relief Program will be managed by Fidelity Investments.

“Many people face the challenge of balancing student debt with planning for their financial futures,” said Carl Gagnon, assistant vice president of Global Financial Wellbeing and Retirement Programs at Unum. “This first-of-its-kind Student Debt Relief Program, along with a range of other financial benefits and resources, provides Unum employees more tools to reduce financial stress and improve overall wellbeing.”

Recruiting tool

Sangeeta Moorjani, head of workplace products for Fidelity, says employers are seeing the benefit of this kind of outside-the-box assistance when it comes to recruiting. She says in the competition for top-shelf talent solutions that give employees a way to address student loan debt can give employers an edge.

Full-time employees at Unum get 28 days of paid time off, including holidays and personal days, with additional PTO available over time during their first year on the job. Each year, employees can carry over up to five days of unused paid time.

In January 2020, those enrolled in the Student Debt Relief Program can transfer up to 40 hours of carry-over PTO into a payment against student debt.

Guide for employers

Fidelity has been a leader in guiding employers in setting up student loan debt repayment benefits. At the beginning of last year, the company established an HR plan for businesses that smoothed the way for an employer to help employees pay down student loan debt. By June of last year, 30 firms had signed on.

The plan can work any number of ways. In 2017, the City of Memphis became the first municipality to offer employees with student loans some help in paying them off. The city contributes $50 a month to the student loan account of any employee who’s worked for the city for at least a year.

Fidelity also practices what it preaches. Its student loan debt repayment benefit offers employees at the manager level and below up to $2,000 a year --$10,000 total -- to pay down student loans. Fidelity says about a quarter of its employees are still paying on student loans.

For consumers going in to surgery or starting a new prescription, knowing all the information about potential side effects is crucial.

However, a recent study found that 35 percent of reviewers failed to list all of the negative side effects of a health intervention in their reports, which can include the effects following a medical procedure or a reaction from a prescription.

“Despite reviewers stating in their own protocols that adverse events should be included in the review, 65 percent fully reported the event as intended by the protocol, eight percent entirely excluded them, and the remaining 27 percent either partially reported or changed the adverse event outcomes,” said Dr. Su Golder.

Getting the most accurate information

The researchers evaluated nearly 200 reviews that were published between 2017 and 2018, looking solely at the reporting of negative outcomes.

The researchers believe that patients have the right to know all of this information, as it can be beneficial to them and to future research endeavors and medical treatment options. However, negative side effects can last for the duration of a patient’s life or are incredibly rare, making it difficult to report on.

In all of the studies the researchers evaluated, 35 percent of reviewers failed to include a comprehensive list of side effects.

“Just over 60 percent...didn’t even include adverse events in their protocols, which suggests that a more proactive approach is needed to prompt reviewers to report on potential harmful side effects in their reporting of healthcare interventions,” said Dr. Golder.  

After the study, it was unclear why the reviewers chose not to include a full list of side effects in their reports, though the researchers noted there could be several determining factors, including hitting a word-count limit. The team hopes their work will push reviewers to provide as much information as possible in their future reports.

“To prevent bias in reporting of these important features of clinical trials, more work is needed to understand why so many reviewers are not fully including them and perhaps more strict guidance is needed on representing them in review protocols in the first instance,” said Dr. Golder.

The full report was published the Journal of Clinical Epidemiology, and can be found here.

In the coming year, Chipotle Mexican Grill plans to open several dozen more mobile-order pickup lanes, called “Chipotlanes.” The chain’s CEO Brian Niccol made the announcement Wednesday during the company’s fourth-quarter earnings call with investors.

Chipotle didn’t provide a list of locations that will soon have Chipotlanes, but it did say that most will be at new locations rather than existing ones. The burrito chain said it has tested its drive-thru style lanes at ten locations -- including restaurants in Illinois, Indiana, Ohio, Tennessee, Texas, and Virginia -- and that those trials have been successful.

The lanes differ from traditional drive thru lanes in that customers can’t place their order on the spot. Before picking up an order at a Chipotlane, customers must first have placed their order on the Chipotle app or on an online form, Niccol explained. After that, customers can pick up their food at a specified time.

"You never have to get out of your car. You order from your app, pull up to the window and out comes Chipotle," Niccol said. "Arguably, it will be the fastest way to [get] Chipotle — going through the Chipotlane.”

Growing digital efforts

In addition to outlining the plan for Chipotlanes, Niccol revealed that Chipotle’s digital sales grew 65.6 percent in the most recent quarter. Mobile and online ordering represented 13 percent of the chain’s sales.

“We definitely saw a trend change,” Niccol said, referring to the boost in digital sales. He attributed the change to improved marketing, operations, and digital efforts. “We’re going to keep doing that in 2019. We believe those are the right strategies to engage with our customers in a unique way.”