Denver, Colorado-based Chipotle Mexican Grill, Inc (CMG) is scheduled to open its first Asian themed restaurant in Washington, D.C this summer.
The new concept, ShopHouse Southeast Asian Kitchen, is based on the traditional shophouses in Thailand, Malaysia and Vietnam. Shophouses are two or three storied buildings with families living in the upper floors and running restaurants on the ground floor.
Shpohouses will offer typical Southeast Asian cuisine coupled with naturally raised food, for which Chipotle is well known. Moreover, customers can enjoy customized meals according to their preference and the food will be cooked in front of the customer in an open kitchen.
Chipotle, a chain of fast casual and Mexican food restaurants, has opened the Asian-inspired restaurant to test how the Chipotle model works with other cuisines. After the opening of the restaurant, the company will wait and watch and decide upon the next step based on the success of the concept.
We believe if Chipotle tastes success in this effort, the company will drive higher profitability in this emerging opportunity. The company is already in an expansion mode and expects to open 135–145 new restaurants in 2011. Additionally, we are encouraged with Chipotle’s international expansion plan. In 2010, the company opened its first restaurant in London and also opened its second restaurant in Toronto, Canada. The company is also seeking opportunities in the U.K, Germany and France, and plans to open a store in Paris by 2011.
Chipotle currently retain a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We are also maintaining our long-term Neutral recommendation on the stock.
The company is slated to release its first quarter 2011 results on April 20, 2011. One of Chipotle’s primary competitors BJ’s Restaurants, Inc. (BJRI) will report its first quarter results on April 21, 2011.
BJ’S RESTAURANT (BJRI): Free Stock Analysis Report
CHIPOTLE MEXICN (CMG): Free Stock Analysis Report
Zacks Investment Research
