After an “outstanding” 2024 that saw 300 new Chipotle restaurants open amid an uptick in overall revenue, it came as a shock to see a media report that purported the beloved Mexican-infused fast-food eatery may have been struggling.

The rumors of Chipotle’s alleged bankruptcy appear to stem from news report in Madrid, which told readers to “say goodbye” to the popular eatery, which triggered frustration across social media. The news spread rapidly, stoked by users with large social media followings.

Since the news had taken flight, Chipotle has formally addressed the rumors. Here’s the latest news.

Is Chipotle closing?

A spokesperson for the restaurant chain told several media outlets including PIX 11 News that the company has no plans to close locations, despite reports that circulated online.

In fact, the fast-food chain is coming off a successful 2024, with over 3,700 restaurants in the U.S. and internationally, with the business’ revenue increased by 14.6%, according to their fourth quarter and yearly report from December. The company has zero debt and over $2 billion cash reserves, a Chipotle representative told Newsweek.

The company plans to add over 300 restaurants this year, many with the “Chipotlane,” a mobile order pickup window that has proven successful for the chain. The app lets customers order their food without waiting in line behind another car.

Where did Chipotle closing rumor come from?

The rumors about Chipotle’s alleged bankruptcy came from a publication in Madrid, which mentioned the closing of for Farmesa Fresh, a Chipotle-invested business venture. Chipotle had initially tested the venture in ghost kitchens in 2023, but decided last summer to no longer pursue it.

The article confused Chipotle with the venture’s closing, and the story has since been corrected, a Chipotle spokesperson told PIX 11 News.

Lori Comstock is a New Jersey-based journalist with the Mid-Atlantic Connect Team.