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Recently, rumors of Chipotle closing its locations and filing for bankruptcy have sent fans of the fast-food chain into a panic. According to a report by USA Today from March 25, 2025, these rumors are false, much to the relief of fans.
There is no truth to any claims of Chipotle closing its locations, and the fast-food chain is not filing for bankruptcy either. The confusion and the rumors appear to have stemmed from an article about Chipotle closing its Farmesa Fresh Eatery, as reported by USA Today. Farmesa Fresh Eatery shut down earlier in April 2024 after a brief stint in California.
The brand's spokespersons have since issued a response clarifying the rumors and have announced that they are working on expansion plans.
More about the rumors about Chipotle closing
The rumors about Chipotle closing and filing for bankruptcy seem to have originated from an article by a Madrid-based publication, Unión Rayo. 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 discussed the shutdown of Farmesa Fresh Eatery.
Farmesa Fresh Eatery was a fast-food chain serving bowls, launched by Chipotle in Santa Monica, California, in early 2023. However, it failed to gain traction and was shut down in April 2024.
The image in the Unión Rayo article prominently features the Chipotle logo, which may have led many readers to mistakenly assume that the article was about Chipotle closing its restaurants and filing for bankruptcy. Many fans took to social media to express their shock at the news. Chipotle has since responded to the rumors, setting the record straight- there is no risk of the chain closing any time soon.
As reported by USA Today, spokesperson Erin Wolford dismissed the rumors in a statement on March 23, 2025. Wolford, Vice President of Communications, clarified that the claims were entirely false:
"False information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023."
According to USA Today, the Mexican Grill fast-food chain also received an apology from Unión Rayo for the misleading article that sparked rumors about Chipotle closing.
Chipotle's plans for growth
Far from rumors of alleged bankruptcy or Chipotle closing its locations, the fast-food chain is expanding. It has new menu releases and growth plans underway. According to a report by USA Today, Erin Wolford spoke about some of these new plans and locations.
"We anticipate opening between 315 to 345 new restaurants this year with at least 80% including a (digital drive-thru) Chipotlane"
Per the media outlet, Chipotle Mexican Grill opened 304 outlets across 257 locations in 2024, including one Chipotlane. The brand's total revenue for 2024 was $11.3 billion, reflecting a 14.6% increase from 2023, as revealed in the fourth quarter and full year 2024 results announced on February 4, 2025. CEO Scott Boatwright discussed plans for scaling in a news release published in the Chipotle Newsroom.
"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," he explained
The rumors about Chipotle closing and allegedly filing for bankruptcy are yet another example of how easily misinformation spreads on social media, where claims can quickly gain traction. However, fans of the Mexican food chain have no reason to worry, as the brand is continuing to grow and expand, with no signs of financial troubles.
