Starbucks says not buying Chipotle, ends takeover speculation
CMG•Starbucks said it is not buying Chipotle, ending speculation about a potential deal. Starbucks shares rose 1% in early trading on Monday while Chipotle shares fell about 4%.
1. Starbucks denies deal
Starbucks said it is not buying Chipotle, quashing talk of a potential acquisition. The statement followed an October 8 report that Starbucks had worked with advisers in recent months on a possible proposal; Starbucks did not comment on whether it had approached advisers.
2. Shares reverse course
Starbucks shares rose 1% in early trading on Monday, while Chipotle shares fell about 4%. The takeover prospect had previously lifted Chipotle shares more than 7% and weighed on Starbucks shares about 3%, while analysts questioned the strategic rationale.
3. Turnaround focus
Starbucks reiterated that management is focused on its “Back to Starbucks” strategy and said it had “strong momentum and confidence” in its long-term growth prospects. The company aims to share fourth-quarter results and its fiscal 2027 outlook later this month.
