Claim:
Social media claims that the popular fast-food restaurant chain Chipotle filed for bankruptcy and will close all of its locations are accurate.
Rating:
Passionate fans of the Tex-Mex, fast-casual restaurant chain Chipotle took to social media to express strong feelings about a rumor that the popular burrito-maker was filing for bankruptcy and closing its doors.
Users posted videos of themselves all over TikTok (archived, archived, archived) visiting their favorite location for the last time or verbalizing their feelings of confusion over the alleged closure. Users on X (archived) posted about the purported news as well, with one asking (archived), “how tf is chipotle going BANKRUPT?!”
However, Chipotle enthusiasts can rest easy. Claims that the popular chain filed for bankruptcy and would close its locations are false.
Erin Wolford, vice president of communications for Chipotle, told Snopes in an email:
The claim that Chipotle is closing restaurants is false. The false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023. The story has since been corrected. We anticipate opening between 315 to 345 new restaurants this year, with at least 80% including a [drive-through] Chipotlane.
Chipotle’s Q4FY2024 earnings call indicated zero debt and over $2 billion in cash reserves. Total revenue for 2024 was $11.3 billion, an increase of 14.6% compared to 2023.
Wolford’s comments align with a Feb. 4, 2025, news release from the company reporting its earnings for “its fourth quarter and fiscal year ended December 31, 2024.”
The “inaccurate online article” referenced in Wolford’s statement was published by the website UniónRayo on March 20, 2025. The original version of the article, which is available to read via the Internet Archive, claimed in a headline that “all [Chipotle] restaurants will close due to bankruptcy.”
However, it was updated following publication to correct the mistake, though the current version of the article makes no mention of a correction.
The new venture Wolford’s statement alluded to was a stand-alone establishment called Farmesa Fresh Eatery, a spinoff restaurant located in Santa Monica, California, that Chipotle opened in 2023.
A news release announcing the new concept on Feb. 15, 2023, described it as “a fresh, bold concept featuring delicious proteins, greens, grains and vegetables that are inspired by Chipotle’s Food with Integrity standards.”
The concept began in partnership with Kitchen United, a company that operated ghost kitchens, or locations where restaurants prepare food solely for delivery and pickup with no dining room service. According to a report from CNBC, Kitchen United closed its Santa Monica location in February 2024, and with it, Farmesa Fresh Eatery.
Restaurant Dive, which describes itself as providing “in-depth journalism and insight into the most impactful news and trends shaping the restaurant industry,” reported on Kitchen United’s struggles as early as November 2023.
According to Restaurant Dive, months after the announcement of Farmesa Fresh Eatery, Kitchen United decided to pivot away from the operation of ghost kitchens to focus on its proprietary kitchen software.
Though the news first appeared in late 2023, the misleading article by UniónRayo in 2025 caused the facts to become jumbled as it spread across social media. While Farmesa is indeed closed, Chipotle’s chief customer and technology officer, Curt Garner, said “that the company has no plans to open a freestanding version of Farmesa. However, the brand lives on in the company’s innovation lab for new menu items,” according to CNBC.
Snopes has fact-checked many claims pertaining to fast-food restaurants, including rumors a Chick-fil-A franchisee was arrested for an alleged sex crime with a minor, claims that McDonald’s is leaving California due to the state’s minimum wage increase and rumors Chick-fil-A sandwiches contain avian contraceptives.
Sources:
A Bump in the Road: Chipotle Abandons Farmesa Fresh Eatery Spinoff after Ghost Kitchen Closes. 20 Mar. 2025, https://unionrayo.com/en/chipotle-shuts-down-farmesa/.
CHIPOTLE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS – Feb 4, 2025. https://www.chipotle.com/whats-new, https://ir.chipotle.com/2025-02-04-CHIPOTLE-ANNOUNCES-FOURTH-QUARTER-AND-FULL-YEAR-2024-RESULTS. Accessed 27 Mar. 2025.
CHIPOTLE INTRODUCES NEW CALIFORNIA INSPIRED FRESH EATERY CONCEPT, FARMESA – Feb 15, 2023. https://newsroom.chipotle.com/2023-02-15-CHIPOTLE-INTRODUCES-NEW-CALIFORNIA-INSPIRED-FRESH-EATERY-CONCEPT,-FARMESA. Accessed 27 Mar. 2025.
Chipotle Mexican Grill Inc (CMG) Q4 2024 Earnings Call Highlight. https://www.gurufocus.com/news/2681625/chipotle-mexican-grill-inc-cmg-q4-2024-earnings-call-highlights-strong-annual-growth-amidst-fourth-quarter-challenges. Accessed 27 Mar. 2025.
Kitchen United Will Sell or Close All Physical Units, Pivot to Software | Restaurant Dive. https://www.restaurantdive.com/news/kitchen-united-closes-kroger-units-sells-or-closes-the-rest-software-pivot/700900/. Accessed 27 Mar. 2025.
Lucas, Amelia. “Chipotle Abandons Farmesa Fresh Eatery Spinoff after Ghost Kitchen Closes.” CNBC, 24 Apr. 2024, https://www.cnbc.com/2024/04/24/chipotle-abandons-farmesa-fresh-eatery-spinoff-after-ghost-kitchen-closes.html.
Say Goodbye to This Popular US Fast Food Chain – All Restaurants Will Close Due to Bankruptcy. 21 Mar. 2025,
