Lately, it seems like Chipotle has been making all the headlines, with allegations of portion size reductions, its pledge not to raise its prices despite tariff increases, and the launch of its new Chipotle Honey Chicken, to name a few.
However, this time, the restaurant chain made major news due to a report that not even Chipotle was expecting.
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Imagine waking up one day and going through your regular daily routine. As the clock nears lunchtime, all you can think about is eating a Chipotle burrito bowl staked with tons of toppings and freshly made guacamole paired with salty chips. However, once you make your way to the nearest Chipotle, the location is closed, and a bankruptcy sign is tapped on the door.
Related: Chipotle makes pricing pledge to customers
A news outlet wrongly reported this about Chipotle, leading netizens to flood the internet and social media platforms with questions about the detrimental allegations.
Woman walking in front of a Chipotle location.
Shutterstock
Rumors about Chipotle shutting down go viral
The news shocked and shattered the hearts of millions of burrito-loving fans worldwide. However, they were not the only ones in disbelief because even Chipotle was surprised by the out-of-field news that spread like wildfire.
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On Mar. 20, an online publication based in Madrid, Spain, called Unión Rayo, published an article about Farmesa Fresh, a single spinoff restaurant that Chipotle had tested and ended up closing in 2024.
The original article contained an image of the Chipotle logo and a different title, which may have caused the confusion. However, it has since been changed to portray the news more accurately.
Chipotle responds to the wrongly reported bankruptcy allegations
On Mar. 26, Chipotle (CMG) confirmed that the company has no plans of shutting down locations despite the recently published article that misreported that the restaurant chain was filing for bankruptcy.
“The claim that Chipotle is closing restaurants is false,” said a Chipotle spokesperson. “The false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023. The story has since been corrected.”
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Chipotle’s claims can easily be proven true in its financial statements as it is far from bankrupt and, in fact, a very profitable company.
According to its earnings release for the full year of 2024, total revenue increased 14.6% compared to last year, with comparable restaurant sales up 5.4%.
Additionally, as stated in its fourth-quarter report, Chipotle has zero debt and over $2 billion in cash reserves.
In its 2025 outlook, Chipotle anticipates opening 315 to 345 new company-owned restaurants, with over 80% having a Chipotlane, a lane for drive-thru and digital order pick-up.
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