Starbucks reportedly explored Chipotle takeover
SBUX•Starbucks reportedly explored a takeover proposal for Chipotle and worked with advisers in recent months. Chipotle has a market capitalization of nearly $39 billion, while Starbucks is worth about $107 billion.
1. Takeover proposal explored
Starbucks has reportedly worked with advisers in recent months on a takeover proposal for Chipotle Mexican Grill, citing people familiar with the matter. Starbucks and Chipotle did not immediately respond to requests for comment.
2. Shares move in opposite directions
Chipotle shares were up about 4% in early trading, while Starbucks shares were down about 3%.
3. Company context
Starbucks CEO Brian Niccol built his reputation at Chipotle before taking the helm at the coffee chain. Starbucks has recorded four straight quarters of comparable sales growth as it seeks to improve customer experience; Chipotle has been contending with muted consumer demand and rising input costs.
