Chipotle Announces New Hamburger Chain

Chipotle Mexican Grill, Inc. CMG announced its own hamburger chain, with the first store set to open this fall. The chain will be called Tasty Made and the first store will open in Lancaster, Ohio.

This new concept will focus on a limited menu, with burgers, fries and milkshakes, with a strategy that appears very similar to that of wildly popular California based chain In-N-Out.

"We think there's great strength in that original fast food model and wanted to create a restaurant built around that," said Chipotle CEO Steve Ells.

Tasty made will use "responsibly raised" brands of beef, with ingredients free of antibiotics or added hormones.

Chipotle's new restaurant goes into the crowded hamburger food space, competing with McDonald's Corporation MCD, who once owned a stake in Denver-Based Chipotle.

"Chipotle's stock has been crashing over the past year and the company has to reassure the public that they are able to control and prevent further outbreaks," Sarhan Capital CEO Adam Sarhan told Benzinga. "To diversify their portfolio they are trying to enter the frothy and crowded upscale hamburger fad. Only time will tell if they succeed."

This isn't the first time Chipotle has diversified itself from burritos, with its Asian concept restaurant ShopHouse and pizza joint Pizzeria Locale.