The Financial Times reported that Starbucks has explored a potential takeover of Chipotle, a deal that could be the largest tie-up in the restaurant sector if completed.
- Starbucks has worked with advisers in recent months on a potential takeover proposal for Chipotle, although the status of the plans remains unclear.
- A completed transaction would surpass Burger King’s $11.4 billion acquisition of Tim Hortons as the largest restaurant deal on record.
- The potential deal would reconnect Starbucks CEO Brian Niccol with Chipotle, which he led from 2018 to 2024.
Chipotle Mexican Grill (CMG) shares drew significant investor attention on Thursday after Starbucks reportedly explored a potential takeover of the restaurant chain.
The Financial Times reported that a purchase of Chipotle, with a market value of nearly $41 billion, would be the largest tie-up in the restaurant sector in history.
CMG shares were up about 6% at the time of writing on Thursday, while SBUX shares were down about 3%.
According to the report, Starbucks has worked with advisers in recent months on a potential takeover proposal for Chipotle. The status of the plans, including whether Starbucks has submitted a formal offer, remains unclear. People familiar with the matter told FT that a transaction of this size may not ultimately move forward.
Potential Deal Would Set Restaurant M&A Record
If completed, the transaction would surpass Burger King’s $11.4 billion acquisition of Tim Hortons in 2014, making it the largest restaurant acquisition on record, according to FT.
The potential combination would bring together two large U.S.-focused restaurant businesses. Starbucks operates about 41,000 owned and licensed stores globally, with roughly two-fifths located in the U.S., while Chipotle has about 4,200 restaurants, almost all in the U.S.
Together, the companies generated nearly $50 billion in sales last year, based on their respective reported figures.
Deal Would Reconnect Starbucks CEO Brian Niccol With Chipotle
The potential transaction would also involve Starbucks CEO Brian Niccol, who previously led Chipotle for more than six years. Niccol left Chipotle in August 2024 to become Starbucks’ chief executive.
At Starbucks, Niccol has been overseeing the company’s ‘Back to Starbucks’ strategy, which includes adding baristas, introducing new menu items, speeding up service and renovating cafes.
Starbucks has also hired former Chipotle executives Tressie Lieberman and Stephen Piacentini to lead marketing and coffee shop development, respectively, according to the FT.
Chipotle Strengthens Board As It Targets Further Expansion
Chipotle recently appointed Sabir Sami, the former CEO of KFC, to its board, effective immediately. The company said Sami brings more than 30 years of global consumer and restaurant-industry experience, including 16 years at Yum! Brands.
Separately, Chipotle is expanding its restaurant leadership pipeline as it works toward a long-term goal of 7,000 restaurants across the U.S. and Canada. The company expects to open 350 to 370 new restaurants in 2026 and aims to have an Apprentice in every restaurant by the end of 2027. More than 85% of Chipotle’s restaurant managers began their careers as Crew Members, the company said.
How Retail Views SBUX, CMG
Retail sentiment on Stocktwits for CMG turned ‘Extremely Bullish’ with ‘High’ message volume over the past 24 hours, while sentiment for SBUX turned ‘Bullish’. Both tickers were trending on Stocktwits at the time of writing.
CMG shares are down nearly 12% year to date, while SBUX shares have gained more than 5% over the same period.
Also read: Why Is HELE Stock Surging Today?
For updates and corrections, email newsroom[at]stocktwits[dot]com.<