Chipotle Mexican Grill on Monday said it plans to open its first restaurant in Mexico early next year, paving the way for future expansion in Latin America.
The Newport Beach, California-based fast-casual burrito chain said it signed a development deal with Alsea, which operates more than 4,700 locations of brands including P.F. Chang’s, Burger King, Chili’s, Domino’s, The Cheesecake Factory and Starbucks in Latin America and Europe.
Chipotle did not provide further details on its expansion plans in Latin America.
“The country’s familiarity with our ingredients and affinity for fresh food make it an attractive growth market for our company,” Chipotle Chief Business Development Officer Nate Lawton said in a statement.
The partnership, however, comes as President Donald Trump stokes a trade war with Mexico, driving up the costs of some ingredients at U.S. Chipotle units.
Chipotle in February said it is expecting a 60-basis point shock to its food costs because of the tariffs and that is investing in back-of-house efficiency-boosting equipment to offset costs. About half of Chipotle’s avocados come from Mexico, the chain said, but the overall spend on ingredients from the southern neighbor only accounts for about 2% of sales.
Quick-service rival Taco Bell has tried twice over the years to plant its flag in Mexico with no success, closing its only store there in 2010.
Chipotle has said it intends to operate 7,000 units across North America. It currently has more than 3,640 stores in the U.S. and Canada, along with 28 in Europe.
The burrito chain signed its first international development agreement in July 2023 with global restaurant operator Alshaya Group, to open restaurants in the Middle East. The partnership has so far resulted in three Chipotle locations in Kuwait and two in the United Arab Emirates.
Alsea CEO Armando Torrado said his company intends to help Chipotle grow its international business “for years to come.”
“Through this development agreement, we will continue to leverage our vast knowledge of the Mexican consumer and restaurant industry expertise to bring our customers the best food experiences and brands from around the world,” Torrado said.
Sales grew 14.7% to $11.2 billion at Chipotle in 2024, according to the latest Top 500 restaurant data from RB research firm Technomic. Chipotle’s unit count grew 8.1% during that time.
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