The status of the proposal and any submission of a formal offer to Chipotle could not be determined, according to the report.
Reached by PYMNTS, a Starbucks spokesperson said in an emailed statement: “As a matter of policy, we don’t comment on rumors and speculation. Our team is laser focused on executing our Back to Starbucks strategy. We have strong momentum and confidence in our long-term growth potential. We look forward to sharing our Q4 results, including FY27 guidance, later this month.”
Chipotle did not immediately reply to PYMNTS’ request for comment.
If Starbucks were to buy Chipotle, it would be the biggest-ever acquisition in the restaurant sector. Chipotle’s market value is $41 billion, according to the report.
The size of the deal might make it unlikely to happen, due to the complexity of bringing together two giant companies, the report said.
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Starbucks CEO Brian Niccol was Chipotle’s CEO for six years. He left Chipotle in August 2024 to join Starbucks, per the report.
Chipotle’s shares have fallen by nearly 20% over the past year, partly due to consumers’ lingering concerns after the chain removed ingredients from a supplier that was tied to a salmonella outbreak, the report said.
Reuters reported Thursday that Chipotle’s shares have dropped by nearly half since Niccol left the company. The report said that, like the rest of the restaurant industry, Chipotle has been dealing with the challenges of a consumer pullback on discretionary spending and the rising costs of food and labor.
A potential acquisition could accelerate Chipotle’s international expansion, as the chain has only 100 locations outside the United States while Starbucks has 22,000, the report said.
Bloomberg reported Thursday that analysts said they were skeptical about the potential acquisition because of the differences between Starbucks and Chipotle and the size of the two companies.
When Starbucks announced in August 2024 that Niccol would be joining the company as CEO, the company highlighted his “focus on people and culture, brand, menu innovation, operational excellence and digital transformation.”
Starbucks said that during Niccol’s six years at Chipotle, the company nearly doubled its revenue, increased its profits nearly sevenfold, increased its stock price nearly 800%, and improved employees’ wages and benefits.
PYMNTS reported at the time that during his tenure at Chipotle, Niccol introduced successful menu innovations and expanded digital capabilities, including online ordering, delivery services and the Chipotle Rewards program.
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