DOW JONES NEWSWIRES Chipotle Mexican Grill Inc. (CMG) plans to open restaurants in Europe, beginning in London late this year, as the upscale fast-food chain continues expanding at a time when higher-priced competitors founder because of a sharp pullback in discretionary spending.
As the restaurant industry in the U.S. turned increasingly dour last year major brands turned their attention abroad, where business remained relatively robust and growing middle classes are creating large pools of consumers eager to taste affordable American-style fare.
Although most of its growth will continue to be in the U.S., Chief Executive Steve Ells said Chipotle may open restaurants in other European cities.
The restaurant chain, which was spun off from McDonald's Corp. (MCD) in 2006, also promoted Monty Moran to co-chief executive and named Mark Crumpacker as its first chief marketing officer.
Moran has been chief operating officer since March 2005. Crumpacker previously worked at Sequence, a brand-consulting firm he co-founded in San Francisco. He developed Chipotle's original identity system in 1993.
Europe is McDonald's second-largest market, and other U.S. fast-food chains have expanded there - including those owned by Yum Brands Inc. (YUM): Pizza Hut, Taco Bell, KFC and John Silver's; Burger King Holdings Inc. (BKC); and Papa John's International Inc. (PZZA).
Not only do the companies encounter less competition overseas than in the U.S., but newly arrived brands also typically enjoy a novelty aura that attracts the curious. Finally, many franchisers sell operating rights to local businesspeople, who assume responsibility for the restaurants day to day and send royalty payments back to the chains' home offices, often giving the corporate owners a superior return on their investment.
Chipotle's shares closed Monday at $62.55, down 2.5%, and were unchanged in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com
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Publié le 05 janvier 2009 Copyright © 2009 Dowjones