Starbucks says it is not buying Chipotle after takeover speculation
The coffee chain said it is focused on its turnaround, while Chipotle shares fell more than 2% in premarket trading, analysts said.
- On Monday, Starbucks Corp denied plans to acquire Chipotle Mexican Grill, ending speculation about a potential mega-deal. "Starbucks is not buying Chipotle," a Starbucks spokesperson told CNBC.
- The Financial Times reported Thursday that Starbucks explored a takeover proposal in recent months, citing people familiar with the matter. Starbucks had previously issued a non-definitive statement regarding the rumors.
- Following the denial, Chipotle's stock fell more than 2% in premarket trading Monday, while Starbucks shares rose more than 1%. Earlier rumors had driven Chipotle's stock higher and Starbucks shares lower.
- Starbucks CEO Brian Niccol is currently leading the company's turnaround program, which shareholders feared would be an expensive distraction. Niccol previously led Chipotle until late 2024.
- Both companies are back to trading on their own fundamentals following the denial. Chipotle shares have plunged about 20% over the last year as the chain attempts to recover from lagging traffic.
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16 Articles
Since last week, according to a media report, it has been speculated that Starbucks could buy a Mexican-based restaurant chain.
It could have been the biggest gastronomic fusion of the economic history. But now Starbucks is expressing itself. The stock is increasing easily.
Starbucks informed, on Monday (12), that it will not buy the network of Mexican food fast-food Chipotle. The network of coffee shops had been associated with a possible acquisition of the company, whose market value exceeded US$ 41 billion last week, after reports that it would have consulted financial advisors to evaluate a proposal. Exclusive material for subscribers. To have full access, access the link of the subject and register.
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