Starbucks denies Chipotle acquisition rumors

Starbucks has dismissed speculation that it is pursuing a takeover of Chipotle Mexican Grill, a move that would have constituted the largest restaurant industry merger in history. A Starbucks spokesperson told CNBC on Monday, "Starbucks is not buying Chipotle." The denial follows several days of intense market rumor regarding a potential mega-deal between the two chains. The speculation gained traction after the Financial Times reported on Thursday that Starbucks had been working with advisers on a takeover proposal in recent months, citing people familiar with the matter. Prior to that, Semafor reported in early October that Chipotle had hired advisers to defend against activist investors or an unwanted takeover bid. The fast-casual chain has been attempting to recover from a difficult 2025, during which customer traffic to its restaurants declined. Consequently, Chipotle shares have fallen approximately 20% over the last year, potentially making the company a more attractive target for acquirers. The initial deal rumors caused Chipotle shares to rise, while Starbucks stock declined on the reports. Investors in Chipotle had speculated about a potential reunion with Brian Niccol, who previously led Chipotle and currently serves as CEO of Starbucks. However, Starbucks shareholders expressed concern over such an expensive distraction while the coffee chain is in the middle of its own turnaround.