Is Chipotle going bankrupt? Here’s the truth behind the rumors and why fans are breathing a sigh of relief
- Replies 0
It started with a headline, spread like wildfire, and suddenly had burrito lovers questioning everything.
But what really happened wasn’t a financial collapse—it was a case of mistaken identity with a side of online confusion.
Now, the fast-casual giant is setting the record straight and proving it’s not just surviving—it’s planning to grow.
The false alarm that started it all
Whispers of bankruptcy started swirling after an article from Union Rayo confused Chipotle with its shuttered spinoff, Farmesa Fresh Eatery.
The article went viral, prompting fans to panic about the future of the popular chain.
In response, Chipotle issued a statement to DailyMail.com that quickly calmed fears. “The claim that Chipotle is closing restaurants is false,” a spokesperson confirmed.
Growth—not closure—is on the menu
Rather than scaling back, Chipotle is preparing to open hundreds of new locations worldwide.
The company is also spicing things up with a new honey chicken flavor, much to the delight of customers.
One fan joked online, “Well, that’s a relief! After seeing some scary headlines, I finally figured out it was just another case of ‘Chipotle-ing’ into the wrong headline.”
A short-lived spinoff sparked confusion
The mix-up stemmed from Farmesa Fresh Eatery, a Chipotle-backed concept that launched in California in February 2023.
The bowl-based eatery was described as a “fresh, bold concept” with meals priced between $11.95 and $16.95.
Despite good intentions, the project was closed by April 2024 after failing to meet expectations.
Chipotle confirmed it has not launched another spinoff since—and is focusing its energy on strengthening the core brand.
Sales take a hit, but business keeps rolling
Chipotle has acknowledged that recent price increases have deterred some budget-conscious customers.
Prices rose two percent late last year to offset higher costs for avocados and beef.
Sales still rose by 5.4 percent in the October to December period—but missed Wall Street’s 5.7 percent projection.
Even a small miss like that equals millions of dollars in revenue, prompting shares to dip by 4 percent in after-hours trading.
Leadership changes and looking ahead
This was the first quarter under new leadership, after Scott Boatwright took over following Brian Niccol’s move to Starbucks.
The company also hinted that if new tariffs on Mexican imports are enacted, prices—and sales—could be impacted further.
Despite those pressures, Chipotle is pressing forward.
With hundreds of new restaurants in the works and ongoing menu innovation, the company is signaling strong confidence in its future.
So, is Chipotle going anywhere?
Not anytime soon. In fact, with new flavors and fresh locations on the way, your favorite burrito bowl might be coming to a new neighborhood near you.
Have you tried the new honey chicken flavor yet? Do rising prices change how often you visit your favorite fast-casual spots? Drop your thoughts in the comments. Let’s hear what you think about the future of one of the most talked-about restaurant chains today.
Also read:
But what really happened wasn’t a financial collapse—it was a case of mistaken identity with a side of online confusion.
Now, the fast-casual giant is setting the record straight and proving it’s not just surviving—it’s planning to grow.
The false alarm that started it all
Whispers of bankruptcy started swirling after an article from Union Rayo confused Chipotle with its shuttered spinoff, Farmesa Fresh Eatery.
The article went viral, prompting fans to panic about the future of the popular chain.
In response, Chipotle issued a statement to DailyMail.com that quickly calmed fears. “The claim that Chipotle is closing restaurants is false,” a spokesperson confirmed.
Growth—not closure—is on the menu
Rather than scaling back, Chipotle is preparing to open hundreds of new locations worldwide.
The company is also spicing things up with a new honey chicken flavor, much to the delight of customers.
One fan joked online, “Well, that’s a relief! After seeing some scary headlines, I finally figured out it was just another case of ‘Chipotle-ing’ into the wrong headline.”
A short-lived spinoff sparked confusion
The mix-up stemmed from Farmesa Fresh Eatery, a Chipotle-backed concept that launched in California in February 2023.
The bowl-based eatery was described as a “fresh, bold concept” with meals priced between $11.95 and $16.95.
Despite good intentions, the project was closed by April 2024 after failing to meet expectations.
Chipotle confirmed it has not launched another spinoff since—and is focusing its energy on strengthening the core brand.
Sales take a hit, but business keeps rolling
Chipotle has acknowledged that recent price increases have deterred some budget-conscious customers.
Prices rose two percent late last year to offset higher costs for avocados and beef.
Sales still rose by 5.4 percent in the October to December period—but missed Wall Street’s 5.7 percent projection.
Even a small miss like that equals millions of dollars in revenue, prompting shares to dip by 4 percent in after-hours trading.
Leadership changes and looking ahead
This was the first quarter under new leadership, after Scott Boatwright took over following Brian Niccol’s move to Starbucks.
The company also hinted that if new tariffs on Mexican imports are enacted, prices—and sales—could be impacted further.
Despite those pressures, Chipotle is pressing forward.
With hundreds of new restaurants in the works and ongoing menu innovation, the company is signaling strong confidence in its future.
So, is Chipotle going anywhere?
Not anytime soon. In fact, with new flavors and fresh locations on the way, your favorite burrito bowl might be coming to a new neighborhood near you.
Also read:
Last edited:
