Is Chipotle Closing For Good In New York?

That's a question many are asking after an article caused many to think it's shutting down, but is it true?

Chipotle is known for its fresh, made-to-order Mexican-inspired food. In fact, it's one of the few fast-food places where you can get freshly made, "real" food. Very little comes pre-packaged. That's come with some controversy over the years, but in general, the restaurant is a very popular chain.

So, when a news story was released suggesting it may go away, it caused a bit of a panic. People were believing the fast-casual restaurant could be shuttering its doors for good, and started losing their minds on X since late last week when an article came out. That article claimed Chipotle was going to file for bankruptcy and close its doors forever.

But is it true?

They're reacting to an article that unfortunately made a mistake.

Chipotle is Not Closing

The article that people read confused Chipotle with another venture that their parent company had tried out for a couple of years in Santa Monica.  The company is called "Farmesa Fresh Eatery."  Essentially, it's a spinoff of Chipotle.  The description they sent out in a press release in 2023 described Farmesa Fresh as "featuring delicious proteins, greens, grains and vegetables that are inspired by Chipotle's Food with Integrity standards." While it was similar to Chipotle, it was a completely different business.

When the publication released the information about Farmesa Fresh closing, they mistakenly confused it with Chipotle, sending the social media world into a frenzy.

Chipotle is actually doing really well

While addressing the rumors online, a spokesperson from Chipotle said this:

"The false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023. The story has since been corrected."

They went on to add that not only are they NOT closing, but they are opening up between 315 and 345 new restaurants this year.  2024 was a very good year for them.  Their Q4FY2024 earnings call indicated zero debt and over $2 billion in cash reserves.

Chipotle will be around for a little while—no need to panic just yet.