Chipotle Mexican Grill Inc.
) is set to launch new ShopHouse (Asian themed restaurants) units
in premium states of the U.S. For this purpose, the company has
entered into new lease agreements.
Under the terms of the deal, the company will be adding new
restaurants in Westwood, CA, Bethesda and Rockville, MD and
Washington, DC. The Westwood and Bethesda-based ShopHouse
restaurants are due to be opened by the end of 2013 while
Rockville and Washington, DC-based units will mark its opening in
Launched in 2011, the ShopHouse Southeast Asian Kitchen
concept, is based on the traditional shophouses (two or three
storied buildings with families living in the upper floors and
running restaurants on the ground floor) located in Thailand,
Malaysia and Vietnam.
Chipotle currently operates one ShopHouse unit in Washington,
DC. The company plans to open three more ShopHouse restaurants in
the Washington, D.C and Los Angeles markets within a few weeks.
By focusing on this emerging opportunity, the company will be
able to drive its profitability, going forward.
Through ShopHouse, Chipotle offers typical Southeast Asian
cuisine coupled with naturally raised food, for which the company
is well known. Moreover, customers can also enjoy customized
meals, which will be cooked in front of them in an open
These expansions can be seen as a positive step by Chipotle
following its achievement to establish ShopHouse as an attractive
brand in the U.S. We believe this concept to be an important
long-term growth driver for this Zacks Rank #2 (Buy) company.
Chipotle's innovative offerings always distinguish it from the
other restaurateurs such as
Panera Bread Co.
Yum! Brands Inc.
). It already has its 'Food With Integrity Program' in store that
focuses on a higher mix of naturally raised pork, chicken and
beef, and organic produce.
It is the only national restaurant company to use fresh
produce since 2008. The customers are fond of Chipotle's
naturally raised ingredients, which helps drive traffic
CHIPOTLE MEXICN (CMG): Free Stock Analysis
MCDONALDS CORP (MCD): Free Stock Analysis
PANERA BREAD CO (PNRA): Free Stock Analysis
YUM! BRANDS INC (YUM): Free Stock Analysis
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