Is Chipotle closing restaurants and filing for bankruptcy? That's what one report claimed, firing up loyal fans. But what's the company saying? Here's everything we know.
In case you missed it, late last week, Unión Rayo published a report dissecting the closure of Farmesa Fresh Eatery, a venture Chipotle briefly tested in Santa Monica, Calif., in 2023 before it shuttered in February 2024.
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While other spinoff restaurants have seen success–namely McDonald's CosMcs, Starbucks Reserve and Taco Bell Cantina–Farmesa Fresh Eatery wasn't worth the effort for Chipotle. At the time, a rep for the company told CNBC that its main focus was its own brand but that Farmesa Fresh Eatery "lives on in the company’s innovation lab for new menu items."
According to Newsweek, the Spanish media outlet's article used a promotional image featuring the Chipotle logo, leading to a whole lot of confusion from fans.
"Chipotle is closing all restaurants & is declaring bankruptcy," one X (formerly Twitter) user wrote. "The number of businesses declaring bankruptcy is very eerie," they added.
Chipotle is closing all restaurants & is declaring bankruptcy. The number of businesses declaring bankruptcy is very eerie.
— Aimee Sukol ☮??????? (@SukolVentures) March 20, 2025"chipotle is closing," a second shared in disbelief. "wtf."
While On The Border, Red Lobster, TGI Fridays, Party City, JOANN, and Forever 21 have filed for bankruptcy protection recently and announced locations would be closing, Chipotle is not among those on the list.
Chipotle spokesperson Erin Wolford issued a statement refuting the rumors, explaining to USA Today that the "false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023."
"The story has since been corrected," the spokesperson noted.
Fans should actually be excited for the company, as Wolford said the Mexican-inspired chain has big plans to grow this year after it reported a 14.6 percent increase in total revenue in 2024 during a Feb. 4 earnings call, even after fans claimed they would "riot" over rising prices.
"We anticipate opening between 315 to 345 new restaurants this year, with at least 80 percent including a (digital drive-thru) Chipotlane."
Comparing this year's goals to last year, in 2024, it opened 304 company-owned restaurants with 257 locations that include a Chipotlane. It also added three new international restaurants, according to the brand.
Not only that, but the fan-favorite fast food chain has also expanded its offerings, adding a "swicy" new protein-packed menu item and bringing back a "top requested" item for a limited time just months prior.
Next: The Chipotle Ordering Hack Fans Call 'Life Changing'
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