Starbucks has explored a takeover of Chipotle Mexican Grill, aiming to unite two of America’s best-known brands in a deal that would be the biggest-ever in the restaurant sector. The coffee chain has worked with advisers on a takeover proposal for Chipotle, which has a $41bn market value, though the status of the plans and any formal offer remains unclear. A transformative deal of this size might not materialise due to the complexity of combining two consumer giants.
The early-stage plans would reunite Brian Niccol, Starbucks’ chief executive, with Chipotle, where he served as CEO from 2018 to 2024. Since Niccol left Chipotle in August 2024, its stock has nearly halved in value. Following the FT report, Starbucks shares fell 3.6% to a $103bn market cap, while Chipotle shares jumped 5.7%.
A deal would eclipse Burger King’s $11.4bn acquisition of Tim Hortons in 2014 and create a combined company with nearly $50bn in annual sales. Starbucks operates about 41,000 stores, two-fifths in the US, while almost all of Chipotle’s 4,200 restaurants are US-based. Both companies declined to comment on the reports.
Source: Financial Times Companies · Summarized by HeadlinesBriefing