Rumors of Chipotle closing its doors and declaring bankruptcy spread like wildfire on social media, causing panic among fans of the popular fast-casual chain. However, these claims are completely false.
The Source of the Misinformation
The confusion appears to have started after Spanish media outlet Unión Rayo published a report about the closure of Farmesa Fresh Eatery, a Chipotle-backed restaurant concept that was briefly tested in 2023. The article’s promotional image initially displayed Chipotle’s logo, leading many to mistakenly believe that Chipotle itself was shutting down.
As the misleading information gained traction, social media users took to X (formerly Twitter) to voice their disbelief and frustration. One user wrote, “Chipotle is closing all restaurants & is declaring bankruptcy. The number of businesses declaring bankruptcy is very eerie.” Others questioned how a company with such a loyal customer base could be struggling financially, with one post humorously stating, “How Chipotle goin bankrupt when I get a bowl with extra chicken and guac every day????”
Chipotle’s Response to the Rumors
Chipotle quickly moved to quash the speculation. Company spokesperson Erin Wolford issued a statement on Saturday, clarifying that the rumors were “false information stemming from an inaccurate online article confusing Chipotle with a venture it tested in 2023.”
To correct the record, Chipotle reached out to the international publication responsible for the misinformation and received an apology for the erroneous report. While Unión Rayo has yet to respond to further inquiries, the false claim has already been debunked by multiple credible sources, including Newsweek and USA TODAY.
What Was Farmesa Fresh Eatery?
Farmesa Fresh Eatery was an experimental restaurant concept launched by Chipotle in Santa Monica, California. The idea was to offer health-focused bowls featuring proteins, grains, greens, and vegetables. The menu, curated by James Beard Award-winning chef Nate Appleman, aimed to reflect Chipotle’s commitment to high-quality ingredients.
Despite initial interest, Farmesa was ultimately shut down after only a few months. However, this closure had nothing to do with Chipotle’s main operations and financial stability.
Chipotle is Expanding, Not Closing
Contrary to the viral rumors, Chipotle is in fact growing. The company is planning to open between 315 to 345 new locations in 2024, with at least 80% featuring a “Chipotlane,” a digital drive-thru lane for mobile orders.
Financially, Chipotle is in a strong position. In its fourth-quarter earnings report released on February 4, 2024, the company announced a total revenue of $11.3 billion for the year—representing a 14.6% increase from 2023. The report also showed that Chipotle has zero debt and over $2 billion in cash reserves.
The Takeaway: Don’t Believe Everything You Read Online
The Chipotle bankruptcy rumor serves as yet another example of how misinformation can spread rapidly online. A misleading headline, combined with social media speculation, caused unnecessary panic among customers. However, the reality is that Chipotle remains financially strong and is actively expanding its presence.
For fans of the brand, there’s no need to worry—your favorite burrito bowls aren’t going anywhere.