Chipotle is putting the rumor mill to rest. Following widespread speculation about the fast-casual chain’s potential closing due to bankruptcy, the company has stepped forward to clarify its position and future plans.
On March 20, rumors began circulating across social media platforms such as X (formerly Twitter), Reddit, and TikTok, with many users expressing disbelief that Chipotle could be facing financial difficulties. One user on X conveyed their confusion saying, ‘chipotle is closing. wtf.’ Another added, ‘i’m still confused on how chipotle is going bankrupt.’
Despite the panic, Chipotle’s representatives have confirmed that the claims are unfounded. In a statement to TODAY.com, they emphasized that the misinformation stemmed from an article published by Unión Rayo, a Madrid-based outlet, which confused the company’s closure of a concept restaurant, Farmesa Fresh, as a sign of the entire chain’s decline.
The article misrepresented Chipotle’s operational status by using a misleading image of the Chipotle logo. In reality, Farmesa Fresh, which was operational only for several months, shut down in 2024 to allow the company to refocus on its primary restaurant brand.
Responding to the rumors, a Chipotle spokesperson stated, ‘The false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023.’ They reassured fans that plans are in place to open between 315 to 345 new restaurants this year, with a notable portion to feature Chipotlane drive-thru services.
Financially, Chipotle boasts zero debt and more than $2 billion in cash reserves, demonstrating a healthy growth trajectory with total revenues of $11.3 billion in 2024, marking a 14.6% increase from the previous year.
As Chipotle continues to evolve and expand, customers can breathe a sigh of relief that their favorite burrito bowl is safe for now.
