By Rajwa Quasim
Starbucks said it remained focused on its turnaround plan after a report suggested the coffee chain had explored a potential acquisition of Chipotle Mexican Grill.
The Financial Times reported that Starbucks had worked with advisers in recent months to examine a possible acquisition of Chipotle. However, neither company has confirmed a deal, and it remains unclear whether Starbucks made a formal offer.
“Our team is laser-focused on executing our Back to Starbucks strategy. We have strong momentum and confidence in our long-term growth potential,” Starbucks said in a statement.
The speculation has attracted attention partly because Starbucks CEO Brian Niccol previously led Chipotle for more than six years before joining the coffee company in September 2024. During his tenure at Chipotle, Niccol helped expand its digital business and strengthen its growth. A takeover would bring Starbucks’ global coffeehouse business and Chipotle’s Mexican-inspired fast-casual restaurants under the same corporate ownership. However, neither company has disclosed details of any potential deal.
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The report triggered a rise in Chipotle shares, which gained about 6% on Thursday. In contrast, Starbucks shares fell as much as 6.6% during the session but closed only slightly lower. Following the report, Chipotle had a market value of approximately $41 billion, compared with about $107 billion for Starbucks.
Since taking over as Starbucks CEO, Niccol has pursued the “Back to Starbucks” strategy, aiming to improve customer service, reduce waiting times and restore the coffeehouse atmosphere that helped establish the brand. A potential acquisition could give Starbucks an opportunity to diversify its business and explore synergies in technology, administration and international expansion. Chipotle, in turn, could benefit from Starbucks’ established global presence.
Starbucks operates approximately 18,000 stores in North America and 40,000 worldwide. Chipotle had 3,938 restaurants in the United States as of last year. The company also opened its first restaurants in Mexico and Saudi Arabia this year, bringing its international footprint to roughly 100 locations.
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Northcoast Research analyst Jim Sanderson told Reuters, “What I like about this potential is the opportunity CEO Brian Niccol would have to leverage Starbucks’ licensed partnerships in Europe to expand Chipotle more aggressively.”
Analysts have also pointed to potential drawbacks. As Starbucks works to improve profitability, integrating two businesses with different operating models and customer preferences could add complexity and put further pressure on the company.
Starbucks shares have gained nearly 11% so far this year, broadly in line with the S&P 500’s 13% increase. The coffee chain has outperformed the S&P 500 Consumer Discretionary sector, which has declined 6.7% over the same period. In contrast, Chipotle shares have fallen more than 11% this year.