Chipotle Shares Rise on Report of Starbucks Takeover Interest
Starbucks has explored a deal to buy Chipotle Mexican Grill, the Financial Times reported Thursday. The report cited people familiar with the matter.
- 8% was Chipotle's peak gain Thursday, CBS News reported; NBC cited 6.2%.
- 6.6% was Starbucks' deepest intraday drop; shares closed nearly flat.
- $105 billion-plus is Starbucks' market value, against Chipotle's roughly $39 billion.
- Starbucks says it remains focused on its Back to Starbucks plan.
Why it matters: A merger would combine two major chains at a time of shifting consumer spending. Analysts quoted in coverage questioned whether the deal makes strategic sense.
- Chipotle stock has fallen about 50% since Niccol left in August 2024.
- TD Cowen called the deal a low-probability outcome for now.
How 6 sources split on this story
Where they split: Coverage differs on emphasis: whether the story is Chipotle's stock jump or the risk a deal poses to Starbucks' turnaround.
Center coverage, 4 sources: The center frames the report as a cloud over evidence that Starbucks' turnaround is gaining traction.
CNBC4hNew data shows Starbucks turnaround is working, but Chipotle takeover report slams shares
Axios5hChipotle shares jump on report of Starbucks takeover interest
Forbes3hChipotle Shares Rise On Report Of Potential Starbucks Acquisition
MarketWatch2hFeel like a pumpkin-spice burrito? Analysts try to wrap their heads around a possible Starbucks-Chipotle tie-up.Left coverage, 2 sources: The left focuses on the market reaction and on Starbucks' insistence that its turnaround still comes first.
What’s next: Starbucks will release its next earnings results later in October.
- The Financial Times said it is unclear whether Starbucks has made a formal offer.
- Will Starbucks make a formal bid, and at what price?
- Would Chipotle's board and shareholders welcome an approach from their former CEO?
- What would Niccol change at Chipotle that current management has not?