Chipotle Debuts in Dubai With Alshaya, Enhances Market Reach
Chipotle Mexican Grill, Inc. CMG has marked its debut in Dubai by opening a restaurant in collaboration with the international franchise retail operator Alshaya Group.
Located at The Beach at Jumeirah Beach Residence, the new Chipotle area spans more than 6,000 square feet and is set in a marquee location along the beachside boulevard. Following this breakthrough debut, another Chipotle location is planned in the United Arab Emirates (UAE) and is expected to open at the Dubai Hills Mall in the upcoming months.
Following the announcement, CMG stock gained 0.9% during the trading hours but inched down 0.1% in the after-hours on Wednesday.
CMG’s Expansion in the Middle East
Chipotle began its strategic move of expanding into the Middle Eastern market in April 2024. It started with the opening of a restaurant at The Avenues, which is considered Kuwait's largest shopping mall. Furthermore, in September 2024, the company opened its second restaurant in Kuwait, which is situated at The Walk Mall in Ardiya.
The company received positive responses from its restaurant openings in Kuwait, boosting its confidence in continuing its expansion initiatives in the UAE.
Chipotle on an Expansion Spree
Chipotle is progressing in smoothening out the pace of its restaurant openings in 2024, with a notable increase in construction compared with the previous year’s tally. Along with the domestic expansion, the company is indulging in expanding its international market reach through restaurant openings in new and existing locations.
The company’s current international portfolio of owned and operated restaurants includes 47 locations in Canada, 20 in the United Kingdom, six in France and two in Germany. In North America, CMG currently owns and operates more than 3,500 restaurants and has a long-term target of 7,000 locations.
For 2024, the company expects to open 285-315 restaurants, mostly concentrated in North America, with more than 80% including a Chipotlane. Chipotle anticipates its annual unit growth rate to be approximately 10%.
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CMG’s shares have gained 26.1% in the year-to-date period, outperforming the Retail – Restaurants industry’s 4.7% growth. Along with expansion strategies, the company is also benefiting from its digital efforts, marketing initiatives and favorable menu pricing.
CMG’s Zacks Rank & Key Picks
Chipotle currently carries a Zacks Rank #3 (Hold).
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