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Starbucks says it will not buy Chipotle following takeover report
Fox Business • • general
Key Points:
- Starbucks has confirmed it is not pursuing an acquisition of Chipotle Mexican Grill, dismissing recent speculation about a potential deal.
- The rumors began after a Financial Times report claimed Starbucks explored a takeover, which would have been the largest restaurant sector merger, reuniting CEO Brian Niccol with his former company.
- Niccol served as Chipotle's CEO until 2024 before joining Starbucks, during which Chipotle saw significant digital growth and overcame food safety issues.
- Following the initial report, Chipotle’s shares rose over 7%, and Starbucks’ shares dropped about 3%, but these trends reversed after Starbucks denied the takeover talks.
- A merger would have created a restaurant giant with approximately $50 billion in annual sales, given Chipotle's $40 billion market capitalization.
