Fact Check: Is Chipotle Mexican Grill closing in 2025? Details here

There have been rumours about Chipotle Mexican Grill closing the restaurants or filing for bankruptcy.

Recently, social media has been flooded with posts claiming that fast-casual restaurant chain Chipotle Mexican Grill is closing its restaurants or filing for bankruptcy.

Chipotle Mexican Grill has more than 3,700 restaurants as of March 2025 and there is no evidence to show that the food chain will close locations while filing for bankruptcy. ((Image source: Facebook))

The rumour seems to have originated from a one-sentence article published by a media outlet in Madrid. The article (and accompanying image) mentioned the closure of a spinoff venture by Chipotle, called Farmesa Fresh. Chipotle launched Farmesa Fresh as an attempt to expand, but it was eventually closed and abandoned, according to Newsweek.

The photo that accompanied the article was also shared widely, which may have contributed to the rumour. However, there is no evidence to suggest that Chipotle is closing its restaurants or planning to file for bankruptcy. In fact, the company is on an expansion trajectory, with year-on-year revenue growth. As of March 2025, Chipotle recorded revenues of $2.8 billion, with a 14.6% increase in revenue compared to the previous year, according to reports.

Speculation on X

Following this news, X was flooded with Chipotle Mexican Grill closing. One of the X user wrote, "Chipotle is closing all restaurants & is declaring bankruptcy."

Another user chimed, "Chipotle is closing all restaurants & is declaring bankruptcy. The number of businesses declaring bankruptcy is very eerie." Another user questioned, “chipotle closing down fr?”

The speculation seems to originate from an article published by a media aggregation site called Unión Rayo, based in Madrid, which mentions the closure of Farmesa Fresh, a spinoff concept Chipotle had backed. The featured image accompanying the article includes the Chipotle logo. The company recently announced that it will shut down the Farmesa concept to focus on its core business. There were claims that Chipotle Mexican Grill would be closing stores and filing for bankruptcy in 2025.

Chipotle Mexican Grill has more than 3,700 restaurants as of March 2025, and there is no evidence to suggest that the food chain will close any locations or file for bankruptcy. Their fourth-quarter results and business evaluation show a 14.6% year-on-year revenue increase for fiscal year 2024, according to reports.

The rumour appears to have stemmed from an unverified article on a Spanish aggregation website. According to Newsweek, Chipotle’s media relations team confirmed that it was a rumour, and that the company plans to open between 315 and 345 new restaurants this year, with at least 80% of those featuring a "Chipotlane"—the drive-thru window option.

In response to the claims that Chipotle is going out of business, a representative said, "Chipotle's Q4FY2024 earnings call indicated zero debt and over $2 billion in cash reserves."

The representative also noted that the revenue spike from 2023 to 2024 could be attributed to this substantial cash reserve.

Further financial details from the company revealed that in 2024, the chain closed five stores and opened 304 company-owned locations. Around eight locations were relocated, and three new licensed stores were opened.

The company’s press release indicated that Chipotle opened a test location of Farmesa Fresh Eatery in Santa Monica, California, in 2023 at 1315 3rd Street.

Farmesa—a new restaurant concept similar to Chipotle—launched with a simplified menu and shorter hours, with the menu designed by Chef Nate Appleman, a James Beard Award winner, who had partnered with Chipotle in the mid-2000s.

The email noted that the single location opened "to gather key learnings," but after several months, the company decided not to continue with the concept.

What's the truth?

In a response from Chipotle’s media team on March 21, shortly after the company released their fourth-quarter earnings and annual financial review, it was confirmed that Chipotle Mexican Grill is neither going bankrupt nor closing any stores. In fact, they are expanding.