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Starbucks is ending speculation that it could acquire burrito chain Chipotle Mexican Grill.
A Starbucks spokesperson confirmed to FOX Business on Monday that the coffee giant would not buy Chipotle following reports that it had explored a potential deal.
“Our team is focused on executing our Back to Starbucks strategy. We are enjoying strong momentum and are confident in our long-term growth potential,” the company reiterated. “We look forward to sharing our fourth quarter results, including guidance for FY27, later this month.”
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Starbucks is ending speculation that it could acquire burrito chain Chipotle Mexican Grill. (Mostafa Bassim/Anadolu via Getty Images)
Discussions about a possible deal began last week after the Financial Times reported that Starbucks had recently explored a potential bid for Chipotle with advisers.
The report cites people familiar with the matter.
“Starbucks has been exploring a purchase of Chipotle Mexican Grill, part of an ambitious gamble to unite two of America’s best-known brands in a deal that would be the largest tie-up ever in the restaurant industry,” the outlet reported.
Such a deal would have reunited Starbucks CEO Brian Niccol at the center of the company he previously led.
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Such a deal would have reunited Starbucks CEO Brian Niccol at the center of the company he previously led. (Reuters/Daniel Becerril)
Niccol spent six years as CEO of Chipotle before leaving in 2024 to take the top job at Starbucks.
During his tenure, Chipotle expanded its digital business and saw strong growth while overcoming previous food safety challenges, according to Reuters.
Chipotle shares jumped more than 7% after the initial report, while Starbucks shares fell about 3%, Reuters reported.
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Niccol spent six years as CEO of Chipotle before leaving in 2024 to take the top job at Starbucks. (Reuters/Brendan McDermid)
Those moves reversed Monday after Starbucks ended takeover speculation. Chipotle shares fell about 4% in afternoon trading, while Starbucks’ shares rose about 1.5%.
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A combination of the two chains would have created a restaurant giant with annual sales of around $50 billion. Chipotle has a market capitalization of about $40 billion, according to Reuters.
Chipotle could not immediately be reached by FOX Business for comment.
Reuters contributed to this report.
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