Chipotle is expanding into Mexico, confident in growth despite potential tariff concerns.

From Yahoo Finance: 2025-04-22 11:47:00

Chipotle Mexican Grill is expanding to Mexico after 32 years in business, with plans to open a location early next year. The company partners with Alsea to explore additional expansion markets in the region, betting on the country’s familiarity with its ingredients and fresh food affinity.

Despite potential tariff concerns, Chipotle is confident in its expansion into Mexico, known for its avocado-rich cuisine. The company imports about half its avocados from Mexico, a staple in dishes like guacamole. The U.S. Commerce Department plans to impose a 20.91% tariff on most Mexican tomatoes.

Following in the footsteps of Taco Bell, Chipotle aims to succeed where others have struggled in the Mexican market. Past attempts by Taco Bell to establish a presence in Mexico were unsuccessful, with challenges in branding and cultural alignment. Chipotle’s move has sparked mixed reactions on social media.

Investment firms are adjusting their price targets for Chipotle ahead of its earnings report on April 23. Analysts expect the company to report profit growth, with revenue forecasted to increase. Despite potential challenges, Chipotle remains optimistic about its long-term growth prospects and market expansion opportunities.

Read more: Analysts reboot Chipotle stock price targets ahead of earnings