Chipotle Mexican Grill, Inc. (NYSE:CMG) is best known for its burrito chains, but the company has taken a swing at some other concepts over the past several years as well. One of those concepts, the ShopHouse Asian Kitchen chain, which boasts 15 store locations, will shut down effective March 17th.
Written by StockNews.com
Nation’s Restaurant News has the details on the closures:
Chris Arnold, a spokesman for the Denver-based company, said that the company has a deal to sell the leases for the ShopHouse locations and plans to close the restaurants effective March 17.
“We now have a deal in place to sell the ShopHouse leases and believe that is the right decision at this time,” Arnold said in an email to Nation’s Restaurant News.
Chipotle opened the first ShopHouse Asian Kitchen in 2011. The fast casual Asian brand grew quickly to 15 locations, but the company wasn’t able to generate enough sales to warrant further investment. Thankfully, ShopHouse employees will be compensated and relocated:
Arnold said ShopHouse employees will be offered employment at Chipotle, and will be paid for an additional week beyond closing while they transition into new positions.
Chipotle also operates two other restaurant chain concepts. Pizzeria Locale offers personalized pizzas and has 7 locations in Denver, Cincinnati, and Kansas City [while] its newest concept,Tasty Made, is a burger restaurant that debuted in a single Ohio location in October…
…Year-to-date, CMG has gained 8.92%, versus a 5.79% rise in the benchmark S&P 500 index during the same period.
CMG currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #22 of 54 stocks in the Restaurants category.
