A “Mexican” restaurant chain is coming to Mexico.

Chipotle (CMG) — the self-appointed “Mexican Grill” known for its burrito bowls, carnitas, and three-taco assembly-line suppers — has not made inroads south of the border even though the chain features south-of-the-border-themed fare. That’s something the U.S. brand intends to change, as it moves to open its first Mexico location in early 2026.

“We are confident that our responsibly sourced, classically-cooked real food will resonate with guests in Mexico,” said Nate Lawton, Chief Business Development Officer at Chipotle. “The country’s familiarity with our ingredients and affinity for fresh food make it an attractive growth market for our company.”

Chipotle is partnering with Alsea SAB — a restaurant company that has brought brands such as the Cheesecake Factory, Starbucks (SBUX), and Burger King (QSR) to Latin America. And Chipotle won’t be the firm’s first Latin American-inspired American brand; Alsea also operates Chili’s (EAT) in Central and South America. (Chipotle’s burritos, however, would more accurately be described as clones of those found in San Francisco’s Mission District.)

Chipotle has been on a hot streak of sorts, with analysts expecting CMG to report a profit of $0.28 per share on a diluted basis, which is up 3.7% from $0.27 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in its last four quarterly reports.

“This seems like an especially good strategy for the fast-casual chain to be pursuing right now, given both the company’s current aggressive plans for international growth, as well as tariff-driven cost increases domestically,” says Roger Beahm, executive director of the Center for Retail Innovation at Wake Forest University School of Business.

“While other chains may choose to exercise caution in the face of an uncertain international trade environment, this announcement demonstrates Chipotle’s willingness to back up its words with actions,” Beahm says.

He also says that with local sourcing of ingredients, Chipotle’s price point shouldn’t be too painful for customers in Mexico.

“Given the cost of produce imported from Mexico to the U.S. is now expected to increase due to higher tariffs, opening restaurants in Mexico should allow the restaurant chain to keep its in-country menu prices there relatively lower — and that’s good for an introductory business,” Beahm says. He adds that given the restaurant chain’s reliance on produce grown in Mexico, one way to hedge against higher costs in markets like the U.S. is to open restaurants close to the source.

“In essence, it shortens the supply chain considerably and makes ‘from farm to fork’ a local reality for Chipotle guests in Mexico,” Beahm says.

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