Chipotle CEO says it will absorb tariff costs
President Trump’s proposed tariffs on major trading partners are affecting the U.S. economy, but Chipotle plans to keep prices stable for their customers.
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The rumors about Chipotle filing for bankruptcy and closing restaurants in 2025 are just that: Rumors.
The misinformation spread about the closure of the fast-casual eatery on social media Thursday and Friday appeared to have started after Spanish media outlet Unión Rayo published a report about the closure of Farmesa Fresh Eatery, a spinoff venture Chipotle invested and tested for a few months in 2023.
The story’s promotional image previously showed the Chipotle logo, Newsweek reported. Numerous users took to X to express frustration with the alleged closures.
“Chipotle is closing all restaurants & is declaring bankruptcy. The number of businesses declaring bankruptcy is very eerie,” an X user posted Thursday morning.
X users were still posting reactions to the rumors days later, wondering how Chipotle could be filing for bankruptcy.
“how chipotle goin bankrupt when i get a bowl with extra chicken and guac everyday?????” another X user wrote.
Chipotle spokesperson Erin Wolford refuted the rumors on Saturday, sharing in a statement that the “false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023.”
Chipotle reached out to international site to correct the story and has since received an apology for the “false article” written last week. Unión Rayo did not immediately respond to USA TODAY’s request for comment on Tuesday.
What is Farmesa Fresh Eatery?
Farmesa Fresh Eatery was a restaurant concept tested by Chipotle for a few months in a Santa Monica food hall in 2023.
“Farmesa is a fresh, bold concept featuring delicious proteins, greens, grains and vegetables that are inspired by Chipotle’s Food with Integrity standards,” Chipotle said in a February 2023 news release.
The “eclectic” menu was curated by Nate Appleman, a James Beard Award-winning Chef who also serves as the Director of Culinary Innovation at Farmesa, and previously led menu innovations for Chipotle in the mid to late 2000s.
Farmesa was slated to serve a variety of bowls complete with a protein, green or grain, two sides, a choice of five sauces, and a topping option that cost between $11.95 to $16.95.
Chipotle not closing, but expanding
Chipotle actually has plans to expand, contrary to the disinformation spread by the rumor mill.
“We anticipate opening between 315 to 345 new restaurants this year with at least 80% including a (digital drive-thru) Chipotlane,” Wolford said.
Chipotle posted its fourth quarter and full year financial snapshot last month, revealing to investors in a Feb. 4 earnings call that the company’s total revenue for 2024 was $11.3 billion, a 14.6% increase from 2023. The earnings call indicated zero debt and over $2 billion in cash reserves, Wolford said.
“Chipotle had another outstanding year,” Scott Boatwright, Chipotle CEO, said in a news release. “I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests.”
Chipotle opened 304 company-owned restaurants with 257 locations including a Chipotlane, and three international licensed restaurants in 2024, the company said. Chipotle also recently introduced a new protein option: Honey Chicken.
Contributing: Gabe Hauari, USA TODAY
