Key facts
- Starbucks has explored acquiring Chipotle Mexican Grill, the Financial Times reported.
- Chipotle's stock surged on the news before paring gains, while Starbucks shares dropped.
- Brian Niccol, currently CEO of Starbucks, was previously the CEO of Chipotle.
Starbucks has explored the possibility of acquiring Chipotle Mexican Grill, according to a report by The Financial Times. The speculation emerged after Semafor reported that Chipotle had engaged bankers to explore strategic alternatives, including a potential takeover.
Shares of Chipotle jumped as much as 8% on the news before paring the gain, while Starbucks shares dropped as much as 6% intraday. A merger would combine two of the largest brands in America's casual dining scene, with Chipotle valued at around $41 billion and Starbucks' market cap sitting at over $103 billion on Thursday.
The move would also mark Starbucks CEO Brian Niccol's takeover of his former employer. Niccol was the CEO of Chipotle from 2018 to 2024. Since Niccol's departure, Chipotle's stock has plunged by 41%, struggling against headwinds including slower sales, higher input costs, and recent public health concerns. Starbucks, by comparison, is in the midst of a major business overhaul. Shares of the coffee chain soared when Niccol joined in August 2024, with the stock up 19% since his role at Starbucks was first announced.
Starbucks and Chipotle did not immediately respond to a request for comment.