Starbucks considers buying Chipotle, Financial Times reports
In short
Starbucks is considering an acquisition of Chipotle Mexican Grill, Japanese outlets reported, citing the Financial Times on October 8. The status of the plan and whether a formal offer has been made remain unclear.
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Starbucks is considering buying Chipotle Mexican Grill, according to Japanese reports citing an October 8 Financial Times report. Jiji Press said the FT's account was based on people familiar with the matter and that Starbucks had been exploring a proposal for the Mexican restaurant chain over the past few months. [ 1 , 2 , 3 ]
The stage of the discussions remains uncertain. Nikkei reported that the current status of the plan and whether Starbucks had made a formal offer were unknown. Jiji said the size of the transaction meant it might not happen. Reuters, in an article carried by Yahoo! News Japan, said Starbucks had discussed a potential proposal with advisers in recent months. [ 1 , 2 , 4 ]
The reports gave different estimates of Chipotle's market value. Nikkei put it at about $40 billion, while Jiji and Tokyo Shimbun cited about $41 billion. Reuters cited LSEG data putting it at about $39 billion, compared with about $107 billion for Starbucks. Nikkei said a full acquisition could be the largest restaurant-industry merger or acquisition. [ 1 , 2 , 3 , 4 ]
A Starbucks spokesperson declined to comment on the report and told Reuters the company was focused on its turnaround under chief executive Brian Niccol. Chipotle did not immediately respond to Reuters' request for comment. Reuters reported that Chipotle shares gained about 6% after the news, while Starbucks shares fell about 3%. [ 4 ]
Niccol led Chipotle from 2018 to 2024 before moving to Starbucks, Tokyo Shimbun reported. Analysts quoted by Reuters questioned the timing and financing of a potential acquisition while Starbucks was still investing in its turnaround. Other analysts said a deal could help accelerate Chipotle's expansion overseas. [ 3 , 4 ]
Why it matters
The reports say a completed takeover could rank among the restaurant industry's largest acquisitions. Analysts quoted by Reuters questioned the potential cost while Starbucks is investing in its own turnaround.
Key facts
- The Financial Times reported that Starbucks was considering a Chipotle acquisition. [ 1 , 2 , 3 , 4 ]
- Jiji reported that Starbucks had been exploring an offer over the past few months. [ 2 ]
- Nikkei said the plan's current status and whether a formal offer had been made were unclear. [ 1 ]
- Reuters reported that Chipotle shares rose about 6% and Starbucks shares fell about 3% following the news. [ 4 ]
Confirmed by several sources
Still unclear
- Whether Starbucks has made a formal acquisition offer. Nikkei says this and the plan's current status are unknown; Jiji says a transaction may not happen.
- Chipotle's market value. The reports cite estimates of approximately $39 billion, $40 billion and $41 billion.