By Daily Mail (U.S.) | Created at 2025-03-30 22:01:26 | Updated at 2025-04-01 18:28:18
1 day ago
Chipotle has responded to rumors of its alleged bankruptcy by announcing plans to open new restaurants.
The restaurant chain, which has also just launched a new honey chicken flavor, confirmed the openings after an article containing misinformation, published by Union Rayo, went viral.
'The claim that Chipotle is closing restaurants is false,' a spokesperson told DailyMail.com.
The article, which has since been corrected, centered around the closure of Chipotle's failed spinoff, Farmesa Fresh Eatery.
'The false information stemmed from an inaccurate online article confusing Chipotle with a venture we tested in 2023,' the spokesperson said.
Chipotle is now in the process of opening hundreds of new restaurants, to the relief of fans who had questioned the alleged bankruptcy on social media.
'Well, that's a relief! After seeing some scary headlines, I finally figured out it was just another case of "Chipotle-ing" into the wrong headline,' an X user joked.
Chipotle recently said higher menu prices had deterred budget-conscious consumers in recent months - hitting it sales.
Chipotle announced its plans to open hundreds of restaurants worldwide this year
Chipotle confirmed the future locations days after social media users claimed the restaurant chain was going bankrupt
Farmesa Fresh Eatery opened in Santa Monica, California, in February 2023 before moving to Irvine.
The chain described the business venture as a 'fresh, bold concept' of meal bowls that cost between $11.95 and $16.95.
'One of our strategic objectives is to create or invest in emerging culinary spaces and restaurant concepts that fit within Chipotle's food with integrity mission and make fresh food daily,' said former CEO Brian Niccol at the time.
Despite the goal, Farmesa Fresh Eatery was a bust, and the restaurant chain shut the development down in April 2024.
'Right now we are much more focused on just turning Chipotle into an iconic brand that I think it can be, not just in the US, but outside the US,' Niccol said last year.
'Obviously, if the opportunity presents itself, where it would make sense for us to do something outside of the brand, so I never want to say never, but it's just not a focus area for us right now.'
Chipotle applied ideas from the eatery to its other restaurants and has not developed another spinoff since the abandonment.
Farmesa Fresh Eatery opened in California in February 2023. Chipotle abandoned the new spinoff in April 2024
The venture shut down has not stopped Chipotle from continuing its financial success.
Chipotle recently said higher menu prices had deterred budget-conscious consumers in recent months - hitting it sales.
And prices could rise more - especially if Trump's 25 percent tariff on goods from Mexico goes ahead. That would hit sales even more, the company said.
Chipotle was reporting its earnings for the October to December period, the first quarter with Scott Boatwright at Chipotle's helm.
He took over mid-August when Starbucks poached Brian Niccol with one of corporate America's most lucrative contracts.
Chipotle said it had raised prices by two percent late last year to cover higher costs for avocados and beef. That hit sales.
Sales were still up by 5.4 percent for October to December, but that was well below the 5.7 percent predicted by Wall Street analysts. That might seem like a small miss but for Chipotle that is hundreds of millions of burritos.
The chain also predicted sales for the rest of 2025 would grow more slowly than had been hoped. As a result, the company's shares fell 4 percent in extended trade.
