Starbucks says it is not buying Chipotle Mexican Grill
SBUX•Starbucks said it is not buying Chipotle Mexican Grill, quashing speculation about a potential deal. Starbucks shares rose about 1% in premarket trading, while Chipotle shares fell about 2%.
1. Starbucks denies deal
A Starbucks spokesperson said on Monday that the company is not buying Chipotle Mexican Grill, quashing speculation about what could have been the largest restaurant deal on record. Starbucks shares rose about 1% in premarket trading, while Chipotle fell about 2%.
2. Earlier takeover speculation
Last week, the Financial Times reportedly reported that Starbucks had worked with advisers in recent months on a potential takeover proposal for Chipotle. That report sent Chipotle shares up more than 7% and Starbucks shares down about 3%. A deal would have created a restaurant company with about $50 billion in annual sales; Chipotle’s market capitalization is around $40 billion.
