Chipotle Mexican Grill plans to open its first store in Mexico early next year, the latest step in its international expansion.

The company announced Monday that it has signed a development agreement with Alsea, which operates stores in Latin America and Europe for chains such as Starbucks, Domino's Pizza and Burger King.

Chipotle plans to explore "other expansion markets in the region" after its first restaurant opens in 2026, which could mean developing a wider Latin American market.

Chipotle's expansion plans come as U.S. President Trump is in a trade conflict with Mexico. Avocados from Mexico were initially subject to a 25% tariff until Trump suspended new tariffs on goods that qualify under the U.S.-Mexico-Canada Agreement. Although Chipotle has diversified its avocado sourcing in recent years, it still imports about half of its avocados from Mexico.

Chipotle has been working to expand internationally in recent years after decades of focusing on its domestic business in the United States. The company has 58 stores in Canada, 20 in the UK, 6 in France and 2 in Germany. In addition, through a partnership with the Alshaya Group, Chipotle currently has 3 restaurants in Kuwait and 2 restaurants in the UAE.

However, Yum! Brands' Taco Bell has tried to enter Mexico twice, but both attempts quickly failed.