Chipotle will open its first Mexico restaurant in Monterrey

Chipotle is taking its first step into Mexico, a market that matters because international growth is becoming a bigger part of the chain’s expansion plan. For investors, the opening gives the company a new test case outside its core U.S. business as it looks to add hundreds of restaurants this year.

The fast-casual restaurant company said Monday that its first Mexico location will open Thursday in San Pedro Garza García, Nuevo León, which is part of the Monterrey metropolitan area. Chipotle said the restaurant is part of its previously announced development agreement with Alsea, a restaurant group.

A development agreement is a deal that lets a partner help open and operate restaurants in a specific market. In this case, Chipotle and Alsea signed the Mexico agreement last year as the U.S.-based chain prepared to enter the country.

Chipotle said the Monterrey-area opening will be the beginning of a broader rollout in Mexico. The company said it plans to expand into Mexico City in 2027.

Chief Executive Scott Boatwright said in a company statement that Chipotle is entering Mexico “with deep respect for the country’s culinary heritage” and plans to deliver its existing restaurant experience. He said the company’s research supported its view that consumers there are interested in fresh food, customization and convenience.

The new restaurant will serve the same menu as Chipotle’s U.S. locations, according to the company. Chipotle did not announce Mexico-specific menu items in its statement.

Why Monterrey comes first

Chipotle said it selected the Monterrey area because of its strong economy, expanding population and role as one of Mexico’s leading business and innovation centers.

San Pedro Garza García sits within one of Mexico’s most important metro areas, giving Chipotle a launch market with a large consumer base and business activity. The company did not disclose how many restaurants it expects to open in Mexico beyond saying the first location is part of a larger rollout.

Expansion is part of the growth plan

Chipotle said it expects to open 350 to 370 new restaurants this year. The company is using new stores, menu additions and international partnerships as parts of its effort to regain growth after a stagnant year.

International expansion remains smaller than Chipotle’s U.S. footprint, but the company has been building its presence through partnerships. Chipotle said it currently operates more than 4,100 restaurants worldwide, including locations in countries across Europe and the Middle East.

For shareholders, the Mexico launch is less about one restaurant and more about whether Chipotle can repeat its operating model in more markets. The company’s first location in Mexico will show how its U.S. menu and customization-focused format translate in a country with its own deep food traditions and strong restaurant competition.

This story draws on original reporting from CNBC.