SEATTLE (dpa-AFX) - Starbucks (SBX) has explored a potential takeover of Chipotle Mexican Grill, a move that could create the largest deal in restaurant industry history.
The coffee chain has worked with advisers in recent months on a possible proposal for Chipotle, which had a market value of about $41 billion. It remains unclear whether Starbucks has made a formal offer, and the discussions could ultimately fail to produce a transaction.
Chipotle shares jumped 7.2 percent following the report, while Starbucks shares fell 4.4 percent, valuing the coffee company at about $102 billion. A deal would surpass Burger King's $11.4 billion acquisition of Tim Hortons in 2014.
The combined company generated nearly $50 billion in sales last year, with Starbucks operating about 41,000 stores and Chipotle roughly 4,200 restaurants.
The potential deal would reunite Starbucks CEO Brian Niccol with Chipotle, where he served as chief executive for more than six years and led a major turnaround. Starbucks is also pursuing its own recovery under Niccol's 'Back to Starbucks' strategy.
Analysts have questioned the strategic rationale, noting limited obvious revenue synergies despite potential cost savings.
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