"Not buying Chipotle": Starbucks squashes blockbuster acquisition speculation

Investing.com -- Shares of Starbucks (NASDAQ: SBUX) climbed 1.5% on Monday after the coffee giant officially denied rumors that it is pursuing an acquisition of Chipotle Mexican Grill (NYSE: CMG). Following the statement, Chipotle’s stock dropped 2.5%.

"Starbucks is not buying Chipotle," a company spokesperson stated, according to reports from CNBC and Bloomberg News.

The definitive denial puts an end to days of mounting market speculation between the two restaurant industry heavyweights. Last Thursday, the Financial Times reported that Starbucks had been working with advisers on a potential takeover proposal in recent months. Speculation was further fueled by a Semafor report earlier in October indicating that Chipotle had retained advisers to fend off activist investors or a hostile takeover bid.

The fast-casual Mexican chain has navigated a challenging 2025, marked by declining restaurant traffic and a 20% drop in its share price over the past year.

Initial acquisition rumors had temporarily boosted Chipotle’s shares while weighing on Starbucks. Some Chipotle investors had hoped for a strategic reunion with Brian Niccol, the former Chipotle chief who now serves as CEO of Starbucks. However, according to CNBC, Starbucks shareholders broadly voiced concerns that a high-profile merger would serve as an expensive distraction while the coffee chain focuses on executing its own internal turnaround efforts.

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