Starbucks denies Chipotle acquisition report

Starbucks has denied reports that it is considering acquiring Chipotle Mexican Grill, stating the company remains focused on its internal strategic plan to boost growth. A Starbucks spokesperson told CBS News that the team is executing its "Back to Starbucks" strategy and has confidence in long-term growth potential. The company plans to share fourth-quarter results and fiscal year 2027 guidance later this month.

The denial follows a Financial Times report last week that Starbucks had been exploring a deal to purchase Chipotle, a move that caused Chipotle's stock to surge as much as 8%. Industry analysts had already expressed skepticism about the likelihood of such a merger. In a research note, TD Cowen analysts described a combination of the two companies as a "low-probability outcome." They expected Starbucks chief executive Brian Niccol to prioritize the company's turnaround plan rather than pursue a major acquisition.

Niccol previously served as CEO of Chipotle before moving to Starbucks. Since Niccol left the Chipotle post in August 2024, the restaurant chain's stock price has dropped about 50%. Over the past year, Chipotle shares have lost approximately 20% of their value. The company currently has a market worth of $47 billion.