Chipotle to Debut in Asia With SPC Group to Expand Global Footprint

Chipotle Mexican Grill, Inc. CMG continues to strengthen its presence in the global restaurant market. For the first time, it is expanding its franchise operations into Asia, in partnership with SPC Group, a South Korea-based food company. Through this accretive partnership, CMG plans to open the first Chipotle restaurants in South Korea and Singapore in 2026.

The collaboration is strategically important because it provides Chipotle with an existing supply chain, operational support and knowledge of the local market — all of which will help mitigate the execution risks that accompany global expansion. Besides, the growing brand awareness among consumers for the company — thanks to Korean band artists — has bolstered this strategic move.

This project lays the foundation for further growth throughout Asia, which could prove to be a significant long-term growth engine and revenue diversification opportunity for Chipotle.

Chipotle’s Footprint Expansion Initiatives

Chipotle continues to execute on its long-term growth strategy by delivering exceptional food and hospitality as well as minimizing its expenses. It remains committed to improving the guest experience, emphasizing value and strengthening brand relevance in a challenging consumer environment. Looking ahead, the company plans to further highlight its value proposition by introducing new menu innovations, expanding its loyalty program and rolling out targeted marketing campaigns.

In the second quarter of fiscal 2025, Chipotle advanced its expansion strategy by opening 61 new restaurants across the United States and Canada, including 47 Chipotlanes, and reaffirmed its target of 315 to 345 new openings for the year. The company is also deepening its international presence through strategic partnerships. In Mexico, Chipotle is collaborating with Alsea, a leading restaurant operator in Latin America and Europe, with the debut location expected to open in early 2026. In the Middle East, its partnership with Alshaya Group is set to accelerate development in the back half of 2025. Together, these initiatives provide a gateway into high-potential growth markets and strengthen Chipotle’s ability to extend its brand globally.

Shares of CMG have declined 22.7% in the past six months against the Zacks Retail - Restaurants industry’s 12.7% rise. Also, weakening consumer confidence, tariff pressures and high expenses are a concern. Going forward, Chipotle intends to leverage digital programs to expand access and customer convenience.

CMG’s Zacks Rank & Key Picks

Chipotle currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are Build-A-Bear Workshop BBW, Groupon GRPN and Levi Strauss & Co. LEVI.

Build-A-Bear Workshop presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 21.3%, on average. BBW stock has jumped 60.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BBW’s 2025 sales and earnings per share (EPS) indicates growth of 7.4% and 6.9%, respectively, from the year-ago period’s levels.

Groupon sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 230.5%, on average. Groupon's stock has surged 88.2% year to date.

The Zacks Consensus Estimate for Groupon’s 2025 sales and EPS indicates growth of 2.2% and 153%, respectively, from the prior-year levels.

Levi Strauss flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 26.9%, on average. Levi Strauss stock has gained 29.8% year to date.

The Zacks Consensus Estimate for Levi Strauss’ 2025 sales indicates a decline of 3.3%, while the same for EPS indicates growth of 4% from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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