Starbucks Officially Denies Chipotle Acquisition Rumors After Four Days: "We Will Not Acquire It"
FT Report Fuels Acquisition Rumors; Chipotle Shares Surge and Plunge
Starbucks has officially denied rumors that it plans to acquire Chipotle, the U.S. Mexican food chain. The rumors, which had fueled expectations of what could be the largest merger and acquisition (M&A) deal in the restaurant industry’s history, have now been firmly put to rest.
According to CNBC on October 12 (local time), Starbucks said in a statement, “It is our policy not to comment on rumors or speculation, but we can confirm that we are not acquiring Chipotle.” The company officially denied the rumors four days after they first surfaced.
Earlier, on October 8, the British newspaper Financial Times (FT) reported that Starbucks might pursue an acquisition of Chipotle. Citing multiple people familiar with the matter, the FT reported that “Starbucks has been working with advisers in recent months to prepare an offer for Chipotle.” There had even been speculation that Starbucks CEO Brian Niccol, who previously served as Chipotle’s CEO before joining Starbucks, would take charge of Chipotle’s operations again after a merger.
After the acquisition rumors emerged, the market anticipated that the deal could be the largest M&A transaction ever in the restaurant industry. There were also expectations that a merger would create the world’s largest restaurant company, with the two companies’ combined revenue approaching $50 billion (about 67 trillion won).
With Starbucks’s denial pushing the acquisition rumors out of the spotlight, Chipotle’s share price fell again. Its shares rose more than 7% shortly after the rumors were first reported, but fell by about 4% or more after Starbucks’s denial, returning to around their pre-report levels.
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Meanwhile, Chipotle’s share price has fallen by about 20% over the past year amid weak performance, including a decline in in-store customers, since 2025. Concerns about a hostile takeover attempt have consequently grown. Earlier this month, the U.S. digital news outlet Semafor reported that Chipotle had hired advisers to defend itself against activist investors.
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