You’ve probably seen the headlines. Maybe a stray tweet or a frantic TikTok popped up in your feed claiming the end of the burrito era. People love a good "fall from grace" story, and in 2025, the rumor mill went into absolute overdrive.
But honestly? Chipotle isn’t going anywhere.
The idea of Chipotle going out of business is one of those internet myths that refuses to die, despite every single financial report saying the exact opposite. It’s kinda fascinating how these things start. Usually, it’s a mix of a few store closures, a CEO departure, and one misinterpreted news article that snowballs into "the sky is falling" panic.
Why Everyone Thought Chipotle Was Closing
The rumor didn't just appear out of thin air. In early 2025, a Spanish-language news site called Unión Rayo published a piece about a spinoff brand Chipotle was testing called Farmesa Fresh Eatery.
They decided to pull the plug on Farmesa to focus on their main burritos.
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The problem? The article used the giant red Chipotle logo as the thumbnail. People scrolled, saw the logo and the word "closing," and didn't bother to read the rest. Within hours, X (formerly Twitter) was flooded with users claiming the chain was filing for bankruptcy.
It got so loud that Chipotle’s media team had to step in. They basically had to scream from the rooftops that they have over $2 billion in cash reserves and zero debt. You don't go out of business when you're sitting on two billion dollars.
The Leadership Shakeup
Then there was the Brian Niccol situation. When the guy who basically saved Chipotle leaves to become the CEO of Starbucks, people get nervous. It looks like a captain jumping off a sinking ship, right?
Actually, it was more like a captain getting headhunted for a much bigger, more broken ship.
Scott Boatwright took over, first as interim and then as permanent CEO. While investors bit their nails, the company just kept opening stores. By the end of 2025, they hit a massive milestone: their 4,000th restaurant, which opened in Manhattan, Kansas. Most companies that are "going out of business" don't open 300+ new locations in a single year.
The Real Struggle: It’s Not Bankruptcy, It’s the Economy
Let's be real—eating at Chipotle feels different than it did three years ago. It’s more expensive.
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If you feel like your wallet is screaming every time you add guacamole, you aren't alone. In late 2025, the company admitted that customers making under $100,000 a year were starting to visit less often. Inflation in beef and chicken, plus those new tariffs everyone is talking about, forced their hand on pricing.
- Traffic is down: Transactions actually dipped about 0.8% in late 2025.
- Check sizes are up: People are paying more, but buying slightly less.
- Digital is king: Almost 37% of their money comes from the app now.
Analysts from places like Deutsche Bank and Oppenheimer aren't predicting a collapse. They’re calling it a "spicy revival." They expect 2026 to be a comeback year, partly because of the World Cup and a bunch of new "high-protein" menu items aimed at the Ozempic and GLP-1 crowd.
Chipotle Going Out Of Business: What the Data Actually Says
If you look at the 2026 strategic plan, it’s the opposite of a shutdown. They are aiming for 7,000 restaurants in North America eventually.
For 2026 specifically, management is planning to open between 350 and 370 new spots. Most of these will have "Chipotlanes"—those drive-thru windows that are basically ATM machines for burritos. They make way more money than the old-school walk-in locations because they’re faster and require fewer people to run the front counter.
Comparing Chipotle to Actual Failing Chains
To understand why Chipotle is safe, you have to look at who is actually hurting. TGI Fridays filed for Chapter 11. Denny’s closed 150 stores and had to sell itself to private equity just to stay afloat.
Chipotle's revenue in Q3 2025 hit $3 billion.
That is an 7.5% increase year-over-year. While their profit margins squeezed a little bit—down to 24.5% from 25.5%—they are still printing money compared to the rest of the casual dining world. They aren't struggling to survive; they're struggling to grow as fast as they used to. There's a big difference.
What to Expect Next
So, if they aren't closing, what are they doing?
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Expect a lot of "limited-time offers." They found out that things like Garlic Guajillo Steak and Chicken Al Pastor bring people back in. For 2026, they've already teased three or four new proteins. They’re also rolling out "HEAT" equipment—new grills and dual-sided planchas—to make the food faster so you aren't standing in a line of 20 people at noon.
The verdict is pretty clear. Chipotle isn't going out of business. It's just evolving into a more expensive, more digital, and more automated version of itself. If you want to keep track of what's actually happening, stop looking at viral rumors and check the SEC filings. Or, you know, just look at the street corner—there’s probably a new one opening there next week.
Your Move: How to Handle the "New" Chipotle
- Use the App: The rewards program is basically the only way to offset the price hikes at this point.
- Watch the Promo Cycle: They’re moving toward a model of constant new releases (like the Red Chimichurri sauce) to keep people interested.
- Check for Chipotlanes: If you’re in a rush, look for the new drive-thru-only locations; they are being prioritized for 2026.
Keep an eye on the February 2026 earnings call. That’s when we’ll see if their plan to win back lower-income diners is actually working or if the "burrito recession" is here to stay.