In recent weeks, unsettling rumors about Chipotle’s potential closure and bankruptcy have stirred concern among its loyal customers. However, a March 25, 2025, report from USA Today confirms that these claims are unfounded, providing reassurance to fans of the popular fast-food chain.
Contrary to circulating reports, Chipotle is not shutting down its restaurants or filing for bankruptcy. The confusion seems to have originated from an article discussing the closure of Chipotle’s experimental branch, Farmesa Fresh Eatery, which ceased operations in April 2024 after a short tenure in California.
Understanding the Origin of the Rumors
The speculation regarding Chipotle’s decline is believed to have stemmed from a misleading piece by Unión Rayo, a Madrid-based publication. The article, titled “A Bump in the Road: Chipotle Abandons Farmesa Fresh Eatery Spinoff after Ghost Kitchen Closes,” was published on March 20, 2025, and primarily focused on the closure of the Farmesa Fresh Eatery concept.
Launched in Santa Monica, California, in early 2023, Farmesa Fresh Eatery specialized in bowls but failed to resonate with customers, leading to its closure just over a year later. The prominence of Chipotle’s branding in the article may have misled readers into assuming a broader operational risk for the main chain. Following the emergence of these rumors, fans took to social media, expressing their surprise and concern.
On March 23, 2025, Chipotle’s Vice President of Communications, Erin Wolford, addressed the misinformation, emphasizing that the rumors were baseless. She stated:
“False information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023.”
According to USA Today, Chipotle has since received an apology from Unión Rayo for the confusion caused by the misleading report.
Chipotle’s Growth Plans and Future Outlook
Far from facing financial difficulties, Chipotle is actively pursuing growth initiatives. The fast-food chain is rolling out new menu items and expansion plans. Erin Wolford provided details on the company’s upcoming strategy:
“We anticipate opening between 315 to 345 new restaurants this year with at least 80% including a (digital drive-thru) Chipotlane.”
In 2024, Chipotle successfully launched 304 new outlets across 257 locations, including the introduction of one new Chipotlane. The chain reported an impressive total revenue of $11.3 billion, marking a 14.6% increase from the previous year. CEO Scott Boatwright elaborated on their growth approach, stating:
“I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests.”
This incident underscores the speed at which misinformation can spread on social media. Despite these rumors, Chipotle’s ongoing expansion and strong financial performance indicate a bright future for the brand, alleviating any concerns regarding its stability.