Eira Wexford
You’ve probably seen the posts online. A TikTok video shows a skimpy burrito bowl, or maybe a tweet complaining about the price of guac is going viral again. And then the question pops up, the one that never seems to fully go away: is Chipotle going out of business? It feels like people have been asking this for years, especially after any little bit of bad news. Here we are in 2025, and the whispers are still around. So let’s just get into it and see what’s actually going on with the burrito giant. Is it all just internet noise, or is there some real fire behind all that smoke?
Remember the Big Scares? A Quick History Lesson
First, we gotta look back a bit. It is the history that really frames the conversation we are having today about Chipotle’s health.
Way back in the 2015-2016 era, Chipotle had a massive food safety problem. E. coli and norovirus outbreaks were all over the news.
It was a total disaster for their image. People were genuinely scared to eat there, and the stock price took a nosedive.
Everyone, and I mean everyone, thought that might be the end. Pundits on TV were basically writing the company’s obituary.
But they didn’t fold. They shut down stores for a day for company-wide safety meetings, they changed how they prepared food, and they slowly, very slowly, won people back. It took a long time.
That whole period showed that the company could survive a catastrophe. A really, really bad one. That’s an important thing to remember.
So, What’s Actually Happening with Chipotle’s Money in 2025?
Okay, let’s fast forward to now. To figure out if a company is dying, you normally look at its money situation. It’s not as scary as it sounds.
Chipotle’s sales are still, generally, going up. People are still buying a ton of burritos and bowls every single day. They are opening new stores too.
But it’s not all perfect. The price of everything has gone up, and that includes the stuff Chipotle needs to buy. Avocados, cheese, chicken, beef, you name it.
This has put them in a tight spot. They have to either eat those costs, which hurts their profits, or they have to make the customers pay for it.
The Price Hike Problem
And we all know which path they chose. The prices at Chipotle have been creeping up and up over the last couple of years.
A chicken burrito that used to feel like a cheap, quick meal is now a serious purchase. Add guac and a drink, and you’re looking at a bill that feels too high.
This is where a lot of the online anger comes from. People feel like they’re getting less food for more money, the whole “skimpflation” thing you see on social media.
While it makes them more money per order, it also risks pushing away customers who just can’t afford it anymore, or simply feel like it’s not a good deal.
New Stuff on the Menu
To keep people interested, they’ve been trying out new things. You probably remember the brisket for a while, and they are always experimenting.
They added that Chicken al Pastor, which was pretty popular. And they’re always pushing different drink options and sides.
This is what healthy companies do. They try to find new ways to get you to come in the door and maybe spend a little extra. It shows they aren’t just sitting back and doing nothing.
The Competition is Getting Seriously Crowded
Here’s another big thing that’s different from ten years ago. Chipotle isn’t the only game in town for quick, sort-of-healthy food anymore.
Back in the day, they were special. Now, the whole “build your own bowl” idea is everywhere. The market is just packed.
You have places that are considered to be direct competitors which have been growing like crazy.
CAVA: This Mediterranean spot is a huge threat. It’s basically the Chipotle model but with different flavors, and people really like it.
Sweetgreen: While it’s more focused on salads, it pulls in the same lunch crowd that wants something fresh and quick. And it has a very strong brand.
Local Spots: In almost every city, there are smaller, local bowl places or modern taquerias that offer something unique and maybe even cheaper.
Chipotle used to be the default choice for a lot of people. Now, you have three or four other options right down the street. That’s a real problem for them.
The Verdict: Is the Sky Falling for Chipotle?
So, after looking at all this, is Chipotle going out of business in 2025?
No. Not even close.
It is the simple truth that they are a massive company that makes billions of dollars. They are not going to just disappear overnight.
But are they facing some big problems? Absolutely. They are walking a very thin line with their pricing. If they push it too far, people will just go to CAVA.
The online complaints about portion sizes are also a real issue. It damages the brand’s reputation for providing good value, which was a big part of their original appeal.
They are no longer the cool new thing on the block. They are a huge, established fast-food chain, and they have the problems that come with that. They have to fight to keep their spot.
So no, they aren’t going bankrupt. But the next few years will be about them figuring out how to compete in a world they helped create. They need to prove their burrito is still worth the price.
Frequently Asked Questions About Chipotle’s Business Health
Is Chipotle actually closing a lot of stores in 2025?
Not really. While any big chain closes a few underperforming locations here and there, Chipotle is still in a phase of opening more stores than it closes. They are expanding, not shrinking.
Why do so many people think Chipotle is failing?
It mostly comes from social media. High prices and smaller-looking portions make for very shareable, angry content. This creates a perception that the company is struggling or ripping people off, even if their overall sales numbers are fine.
Is Chipotle stock a good buy right now?
(Disclaimer: This is not financial advice!) The stock has had its ups and downs. It gets hit by bad press about prices but also jumps when they report strong sales. It’s a complicated picture, for sure.
What is Chipotle’s biggest challenge going forward?
Their biggest challenge is probably justification. They have to justify their high prices to customers who now have many other, often cheaper, options for a similar style of meal.
Will Chipotle ever lower its prices?
It’s highly unlikely. With food and labor costs remaining high, price cuts are very rare in the fast-food world. They are more likely to offer temporary deals or promotions than to lower menu prices across the board.
Key Takeaways
Chipotle is definitely not going out of business. They are a very large and profitable company.
They face real challenges from rising food costs, which have forced them to increase their menu prices significantly.
Much of the “they’re failing” talk comes from customer frustration over high prices and perceived smaller portions.
Competition in the fast-casual space is much tougher now than it was a decade ago, with rivals like CAVA growing fast.
The company’s future success depends on balancing profitability with customer satisfaction and value.
