Starbucks Denies Reports It Is Considering Acquiring Chipotle
Starbucks has denied reports that it is considering acquiring fast-casual chain Chipotle Mexican Grill, following days of speculation about a potential mega-deal. A Starbucks spokesperson told CNBC: 'Starbucks is not buying Chipotle.' The rumors had previously caused Chipotle's stock to rise while Starbucks' shares fell. The Financial Times initially reported that Starbucks has been working with advisers on a possible takeover proposal for months, citing unnamed sources. Earlier in October, Semafor noted that Chipotle hired advisors to prepare against activist investors or an unwanted bid. Chipotle is still recovering from declining customer traffic and a 20% drop in its stock price over the past year. Investors had speculated about a potential reunion between Starbucks CEO Brian Niccol—who previously led Chipotle—and the fast-casual chain, but shareholders of both companies remain cautious due to financial concerns.
Topics: Chipotle Mexican Grill rumors Starbucks stock market reaction