No, Chipotle is not going out of business. Recent rumors suggesting bankruptcy and widespread restaurant closures are unfounded. The confusion likely stems from the closure of Farmesa Fresh Eatery, a spinoff venture that Chipotle tested in 2023 and discontinued in April 2024. This decision was part of the company’s strategy to focus on its core brand.
Chipotle has refuted bankruptcy claims and announced plans to open between 315 to 345 new restaurants in 2025, with at least 80% featuring their drive-thru model, Chipotlane. The company reported zero debt and over $2 billion in cash reserves at the end of the fourth quarter of fiscal year 2024, with total revenue of $11.3 billion, up over 14% compared to 2023.
Despite challenges facing the restaurant industry, including shifts in consumer sentiment and economic pressures, Chipotle continues to expand and innovate, demonstrating financial stability and a commitment to growth.