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Starbucks says it is not buying Chipotle following deal speculation
Confirmed
In Short: Starbucks has a policy of not commenting on rumors and speculation, but the company wanted to be clear that it is not buying Chipotle.
Starbucks has officially denied rumors of a potential acquisition of Chipotle Mexican Grill, putting an end to speculation that the two companies might merge. A Starbucks spokesperson confirmed to FOX Business on Monday that the coffee giant is not buying Chipotle, following a report that it had explored a potential deal.
The Financial Times reported last week that Starbucks had recently explored a potential bid for Chipotle with advisers. The report suggested that Starbucks CEO Brian Niccol, who previously led Chipotle, might return to the company he once headed.
Chipotle shares initially jumped more than 7% following the initial report, while Starbucks shares fell about 3%, according to Reuters. However, after Starbucks denied the rumors, Chipotle shares fell about 4% in afternoon trading, while Starbucks shares rose roughly 1.5%.
Starbucks is currently in the midst of a vast turnaround program, which Niccol has touted in recent weeks as delivering progress. Since joining Starbucks in 2024, Niccol has led its Back to Starbucks strategy, aiming to win back customers by reimagining the coffeehouse experience.
Chipotle, meanwhile, has seen its stock price plunge 20% over the past 12 months, while Starbucks shares have risen 15% over the same period. The potential deal would have been transformative for the restaurant and fast-casual dining sector, combining Starbucks’ $102 billion market capitalization with Chipotle’s $41 billion.
The rumored deal would have created a company with roughly $50 billion in sales in 2025 and about 41,000 stores worldwide, according to The Puget Sound Business Journal. However, the likelihood of such a deal was described as “relatively low” by Davidson analyst Matt Curtis, who put the odds at roughly 20%.
Starbucks has a policy of not commenting on rumors and speculation, but the company wanted to be clear that it is not buying Chipotle. In a statement, Starbucks said, “Our team is laser focused on executing our Back to Starbucks strategy,” while adding that the company looked forward to sharing its latest financial results later in October.
Two former Chipotle executives are also helping implement Starbucks’ strategy: Tressie Lieberman, who leads marketing, and Stephen Piacentini, who oversees coffeehouse development. Despite the rumors, the confirmation on Monday put those speculations to rest.
What this adds
The denial of the acquisition rumors has stabilized the stock prices of both companies, with Chipotle's shares falling and Starbucks' shares recovering.
What's confirmed
- "Starbucks has explored a takeover of Chipotle Mexican Grill, in an ambitious gambit to unite two of America’s best-known brands in a deal that would rank as the biggest-ever tie-up in the restaurant sector," the outlet reported.
- “As a matter of policy, we don’t comment on rumors and speculation, but we want to be clear we are not buying Chipotle,” a Starbucks spokesperson told NBC News in an email.
- Over the past year, Starbucks shares have risen 15%.
- The announcement from Starbucks came after the Financial Times reported Thursday that “Starbucks has explored a takeover of Chipotle Mexican Grill.” The report also said that it had hired advisers to work on a takeover proposal for Chipotle.
- Starbucks responded to the report later Thursday by issuing a statement that did not definitively address the status of its interest in Chipotle.
- A deal between Starbucks and Chipotle would have been transformative for the restaurant and fast-casual dining sector.
- “Our team is laser focused on executing our Back to Starbucks strategy,” they said, while adding that the company looked forward to sharing its latest financial results later in October.
- "We look forward to sharing our Q4 results, including FY27 guidance, later this month."
- Starbucks is in the midst of a vast turnaround program, which Niccol has touted in recent weeks as delivering progress.
What's still developing
- Fox News host Jimmy Failla discusses Starbucks resolving a Florida DEI lawsuit with a nationwide agreement and Michigan Democratic U.S. Senate nominee Abdul El-Sayed’s seemingly dodging questions about Hasan Piker on ‘The Evening Edit.’ Starbucks is putting an end to speculation that it could acquire burrito chain Chipotle Mexican Grill.
- Niccol spent six years as Chipotle's CEO before leaving in 2024 to take the top job at Starbucks.
- Those moves reversed Monday after Starbucks shut down the takeover speculation.
- During his tenure, Chipotle expanded its digital business and posted strong growth as it moved beyond earlier food-safety challenges.
- If completed, the deal would have been the largest restaurant acquisition in history, eclipsing Burger King’s $11.4 billion purchase of the Canada-based coffee chain Tim Hortons in 2014.
- The rumors alone sent Chipotle stock up roughly 6% after the news, though Starbucks’ share price ended Thursday in the red after recovering from a steeper earlier drop.
- In a previous letter to employees, Starbucks Chief Operating Officer Mike Grams said the targeted locations either aren’t delivering acceptable financial results or can’t provide the kind of experience Starbucks wants for customers and employees.
- A Starbucks logo is displayed outside of a shop on July 20, 2026, in Washington, D.C.