Rumors of Chipotle Mexican Grill filing for bankruptcy and closing restaurants this year have spread on social media, sparking concern among users about the popular fast-casual chain.

Newsweek reported that the rumors began circulating online Thursday and Friday after Madrid-based outlet Unión Rayo published an article mentioning the closure of Farmesa Fresh Eatery, a Chipotle-backed spinoff that the company invested in and tested for several months in 2023.

The story’s branding image showed the Chipotle logo, leading many social media users to believe the beloved eatery was shutting down.

Social media users react to claims

“Chipotle is closing all restaurants & is declaring bankruptcy. The number of businesses declaring bankruptcy is very eerie,” one user on X, formerly Twitter, wrote.

Another tweeted, “if Chipotle go out of business before Arby’s do, I’m gonna start burning s**t fr,” with an Arthur meme GIF.

“CHIPOTLE GOING BANKRUPT DON’T MAKE NO SENSE TO ME!!!” a third user said.

Chipotle spokesperson dismisses the social media claims

As social media erupted over the unverified rumors, Chipotle spokesperson Erin Wolford rejected the claims, clarifying that the “false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023,” according to USA Today.

Chipotle has contacted the Spanish outlet to correct the story and has since received an apology for its “false article,” the outlet reported.

What is Farmesa Fresh Eatery?

The restaurant chain first announced Farmesa Fresh Eatery in 2023 with a testing location in Santa Monica, California. The overall concept of the food spot was to offer customers healthier options with proteins, grains and vegetables inspired by “Chipotle’s food and integrity standards,” according to a news release. It was a soft open with limited hours and an abbreviated menu curated by James Beard Award-winning chef Nate Appleman.

Chipotle will expand with new locations

Despite Farmesa Fresh Eatery closing several months later, the news about Chipotle closing this year is false. According to a February news release, the restaurant chain plans to expand with 315 to 345 new locations to open in 2025. There are 3,700 Chipotle locations worldwide, with 3,371 in the United States.

In the fourth quarter of the 2024 fiscal year, Chipotle’s revenue rose 13.1% to $2.8 billion, driven by new openings and a 5.4% rise in “comparable restaurant sales,” the news release states. “Higher transactions of 4.0% and a 1.4% increase in average check” contributed to the growth. Digital sales accounted for 34.4% of total revenue.

Chipotle also plans to open its newest venture, “Chipotlane,” a drive-thru option for its customers, sometime this year.

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