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Chipotle Mexican Grill is opening its first restaurant in Mexico by early 2026, marking a major step in the company's plan to grow beyond the US, even as trade tensions between the two countries linger.

The popular US-based fast-casual chain announced on Monday that it has teamed up with Alsea, a company that already runs restaurants like Starbucks and Domino's Pizza across Latin America and Europe.

This partnership will help bring Chipotle's menu of burritos, bowls, and tacos into the heart of the cuisine that inspired it.

After the first restaurant launches, Chipotle and Alsea will look at the possibility of expanding into more Latin American countries.

The move comes as former President Donald Trump's tariff threats on goods from Mexico continue to create uncertainty. Avocados, one of Chipotle's key ingredients, were once at risk of facing a 25% import tax, NBC News said.

Although those plans were paused, Chipotle still brings in about half of its avocados from Mexico, despite efforts to buy from other places.

Chipotle Targets Mexico for First Latin American Location

Nate Lawton, Chipotle's Chief Business Development Officer, shared why the company believes Mexico is the right place to grow next.

"We are confident that our responsibly sourced, classically-cooked real food will resonate with guests in Mexico," he said.

"The country's familiarity with our ingredients and affinity for fresh food make it an attractive growth market for our company."

While the company is hopeful, not all American brands have been successful in Mexico. Taco Bell, for example, has tried to enter the market twice but didn't last.

Chipotle is aiming to differentiate itself by prioritizing the use of high-quality ingredients and freshly prepared food.

Chipotle's expansion into Mexico follows its earlier steps into other global markets.

Chipotle now operates restaurants in several international markets, including Canada, the United Kingdom, France, Germany, Kuwait, and also in the United Arab Emirates.

In 2023, the company took a major step in its global expansion by forming its first international partnership with the Alshaya Group, helping to introduce the brand to the Middle East.

According to Benzinga, Chipotle continues to grow its global footprint, currently operating over 3,700 restaurants around the world.

Looking ahead, the company has announced plans to significantly increase its presence by opening up to 345 new locations in 2025.

This expansion is part of a broader long-term vision to eventually reach 7,000 restaurants across the United States and Canada.