Is Chipotle Actually Closing? Company Says No, Here's Why

Social media has once again done what it does best—spark panic with an unfounded rumour. This time, it's Chipotle in the hot seat, with claims flooding platforms that the beloved Tex-Mex chain is shutting its doors for good. The rumour gained rapid traction, leaving loyal customers worried about the future of their favourite burrito bowl. But the company has now stepped in to shut down the chatter—and it's got the receipts to prove it.

Over the past week, speculation about Chipotle filing for bankruptcy has been spreading online, prompting questions about the brand's recent performance and long-term viability. However, the Mexican-style fast food chain has firmly denied the claims, calling them 'completely false'.

In a statement to the media, Chipotle clarified that the confusion stemmed from an inaccurate article that mistakenly linked the company to the closure of Farmesa Fresh—a short-lived business venture it tested in 2023. 'The false information stemmed from an inaccurate online article confusing the Mexican chain with a venture it tested in 2023. The story has since been corrected,' the company said.

Where Did the Rumour Originate?

The story appears to have originated from a Madrid-based publication which reported that Farmesa Fresh—a Chipotle-backed experimental brand—was closing down. Farmesa was introduced in 2023 as a healthy, protein-focused concept operated through ghost kitchens, with orders placed via platforms such as Uber Eats.

Despite initial excitement, the project never fully took off, and Chipotle eventually chose not to continue investing in it. According to Chief Restaurant Officer Scott Boatwright, the company is now focused on strengthening the core Chipotle brand both in the US and abroad.

Still, as often happens online, people began connecting the dots between Farmesa's closure and the potential demise of Chipotle itself. The story quickly snowballed on social media, fuelling concern among customers who feared their go-to burrito spot might be disappearing.

No Need to Worry—Chipotle is Thriving

The reality, however, couldn't be further from the rumours. Chipotle is not only alive and well, but thriving. The company had what it described as an 'outstanding' 2024, opening over 300 new locations and experiencing a revenue increase of 14.6%. With over 3,700 restaurants globally, the brand also boasts zero debt and more than $2 billion in cash reserves, according to its most recent earnings report.

Looking ahead, Chipotle plans to open hundreds more stores in 2025. Many of these will feature a 'Chipotlane'—a drive-thru service window allowing customers to collect digital orders without leaving their vehicles. The initiative has proven successful, and the company aims for 80% of its new locations to include this feature.

Menu Expansion and Customer Feedback

Alongside expansion plans, the brand is also shaking up its menu. One of its latest offerings, Chipotle Honey Chicken, has been well received and is expected to remain a staple for some time.

However, not everything has been smooth sailing. In recent years, customers have criticised the chain for rising prices and what some describe as shrinking portion sizes—claiming they're no longer getting the same 'bang for their buck'. Despite these concerns, Chipotle has committed to keeping menu prices stable for now.

Boatwright told NBC News that the company does not plan to raise prices—even in light of potential cost increases due to tariffs on imported goods.

The Bottom Line

In short, there's no need to cancel your guac cravings just yet. Chipotle is not going anywhere. The closure of Farmesa Fresh may have sparked the rumour mill into overdrive, but the chain itself is flourishing and doubling down on its commitment to growth.

So the next time a viral post suggests your favourite fast-casual spot is doomed, perhaps take it with a pinch of salt—and maybe a side of chips.