Chipotle Mexican Grill (NYSE:CMG) has announced that it has signed a development agreement with international franchise retail operator Alshaya Group to open restaurants in the Middle East, as the American burrito chain looks to accelerate its international expansion.
In partnership with Alshaya, Chipotle will first launch new locations in Dubai and Kuwait early next year, before expanding further into the region.
"Leveraging Alshaya's market expertise will enable us to quickly gain access to these vibrant economies,"
said Chipotle chairman and chief executive officer Brian Niccol.
Chipotle currently owns and operates several restaurants in Canada, the U.K., France, and Germany. In North America, the company has 3,200 locations, which it is aiming to increase to 7,000 over the long term.
Kuwait-based Alshaya, meanwhile, has worked with brands like Starbucks (NASDAQ:SBUX), Shake Shack (NYSE:SHAK), and Texas Roadhouse (NASDAQ:TXRH), and has a portfolio of thousands of stores and cafes that extends across the Middle East and North Africa into Turkey and Europe.
Shares in Chipotle are trading in the green on Tuesday, pulling back somewhat from a record high touched early in the session.
News Source: Investing.com