Starbucks Considers Chipotle Acquisition After Turnaround Efforts

Starbucks is considering a potential acquisition of Chipotle Mexican Grill as the coffee company seeks growth opportunities under CEO Brian Niccol, who previously led Chipotle. The possible deal was reported by The Financial Times after Starbucks worked with advisors on a takeover proposal. Chipotle shares rose nearly 7% in late morning trading after the report, while Starbucks shares fell more than 3%, according to market data cited in the report.

Chipotle had a market capitalization above $41 billion, making any acquisition a major restaurant industry transaction. The Financial Times reported that a Starbucks purchase of Chipotle would become the largest merger in the restaurant sector, exceeding Burger King's 2014 acquisition of Tim Hortons, which was valued at about $11.4 billion.

Brian Niccol previously served as Chipotle's CEO for six years before leaving the company in August 2024 to lead Starbucks. During his tenure at Chipotle, sales increased and the company's share price climbed more than eightfold, according to the report.

Niccol has also been working to improve Starbucks performance after the company recorded six consecutive quarters of declining sales from early 2024 through late 2025. The company has focused on faster service, more consistent products, and changes to store environments. Since Niccol departed Chipotle in late August 2024, Chipotle shares have declined about 40%, while Starbucks shares have fallen about 5%, according to the report. The potential acquisition would require regulatory review because of the size of the transaction.

Starbucks has not confirmed that it will proceed with an offer for Chipotle. The reported discussions remain at the proposal stage, according to The Financial Times.