MW Chipotle opens kicks off Middle East expansion with first Kuwait restaurant
By James Rogers
The Kuwait City restaurant marks Chipotle's first entry into a new country in 10 years
Chipotle Mexican Grill Inc. has opened a location in Kuwait, marking its first restaurant in the Middle East and the first time Chipotle has entered a new country in 10 years.
The Kuwait City restaurant has been operating with adjusted hours since the beginning of April to account for holidays and staff training, Chipotle $(CMG)$ said, in a statement. The restaurant's official grand opening will be on April 23.
Last year Chipotle announced a partnership with franchise retail operator Alshaya Group to open restaurants in the Middle East. In Monday's statement announcing the new location, Chipotle said that Alshaya Group will open the company's first Dubai location later this year. Alshaya Group is expected to open total of four new restaurants this year, the company said.
Related: Chipotle's stock zooms to record after announcing 50-for-1 stock split. Some analysts think it can go even higher.
Chipotle has over 3,400 restaurants in North America, 19 in the U.K., six in France and two in Germany.
The Kuwait location is the first to feature the company's new design, according to Chipotle, which includes a wood tile floor - replacing Chipotle's traditional concrete floor - and new wall finishes.
Shares of the fast-casual restaurant chain were down 0.04% in premarket trades Monday. Chipotle's shares are up 25.5% in 2024, outpacing the S&P 500 index's SPX gain of 4.1%. Chipotle's stock hit a record close last month, boosted by the announcement of a 50-for-1 stock split - the company's first such move.
Related: Your avocado toast could soon get more expensive - again
In a note released Monday, Raymond James described Chipotle, along with Shake Shack Inc. (SHAK), Chilli's parent Brinker International $(EAT)$, First Watch Restaurant Group Inc. $(FWRG)$, and Bloomin' Brands Inc. $(BLMN)$ as its top long ideas among restaurant stocks. "We maintain a selective stance towards our restaurant universe as industry sales have underwhelmed in recent months causing us to increasingly favor stocks with idiosyncratic factors trading at attractive valuations," wrote Raymond James analyst Brian M. Vaccaro.
-James Rogers
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April 22, 2024 09:26 ET (13:26 GMT)
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