Starbucks explores takeover of Chipotle in potential $39bn deal

Summarised from 2 outlets · Updated 8 Oct, 16:44 · Archive

Starbucks has explored a takeover of burrito chain Chipotle, which has a market value of nearly $39 billion.

Starbucks has explored a takeover of Chipotle Mexican Grill, according to the Financial Times, in a deal that would reunite Chief Executive Brian Niccol with the burrito chain he previously led. The coffee chain has worked with advisers in recent months on a takeover proposal. Starbucks, valued at about $107 billion, and Chipotle have not publicly commented on the reports.

Chipotle has nearly 4,000 restaurants in the US and about 100 internationally, while Starbucks operates roughly 40,000 stores globally. Analysts suggest a potential deal could accelerate Chipotle's international expansion, leveraging Starbucks' licensed partnerships in Europe. Chipotle has faced softer customer traffic as consumers reduce discretionary spending, and the burrito chain's shares have declined about 17 per cent this year. Shares of Chipotle rose about 6 per cent on the takeover reports, while Starbucks shares fell about 3 per cent.

Niccol spent six years at Chipotle before joining Starbucks in 2024, where he oversaw a turnaround after food-safety crises and expanded the chain's digital business.

How it is being reported

• Starbucks reportedly explored Chipotle takeover — as burrito chain’s shares surgeStarbucks CEO Brian Niccol built his reputation at Chipotle before taking the helm at the coffee chain.New York Post · 8 Oct, 16:21
• Starbucks has explored takeover of Chipotle in restaurant megadealA purchase of nearly $39bn market-value burrito chain would rank as largest restaurant acquisition of all timeFinancial Times · 8 Oct, 15:06

In this story: Starbucks · Chipotle Mexican Grill · Brian Niccol · Financial Times

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem