Updated Version 3 - According to the Financial Times, Starbucks once considered acquiring Chipotle
路透社2026/10/08 15:31New charts have been added, providing a detailed overview of Chipotle and Starbucks’ businesses. According to Reuters on October 8, referencing the Financial Times from Thursday, Starbucks had considered acquiring Chipotle Mexican Grill. Such a move would enable CEO Brian Niccol to return to the burrito chain, where he served as chief executive before joining Starbucks two years ago. The Financial Times, citing sources familiar with the matter, reported that the coffee chain has been working with advisers in recent months to formulate an acquisition proposal for Chipotle. Both Starbucks and Chipotle did not immediately respond to Reuters’ requests for comment. Chipotle currently has a market capitalization close to $39 billions, with its stock rising about 6% on Thursday, while Starbucks’ shares fell approximately 3%. According to data from the London Stock Exchange Group (LSEG), Starbucks is valued at about $107 billions. As consumers cut back on discretionary spending, Chipotle has faced declining customer traffic, while rising food and labor costs have pressured profit margins across the sector. Its stock price has dropped about 17% so far this year. Analysts suggest that a potential deal could also accelerate Chipotle’s international expansion. “I see the appeal of this prospective transaction in that CEO Brian Niccol would have the opportunity to leverage Starbucks' European franchise partnerships to pursue Chipotle’s growth more aggressively,” commented Jim Sanderson, an analyst at Northcoast Research. As of the end of last year, Chipotle operated nearly 4,000 restaurants in the US and about 100 abroad. In comparison, Starbucks has about 40,000 stores globally, with roughly 18,000 in North America. Niccol joined Starbucks in 2024 after six years at Chipotle, where he was credited with leading the company’s turnaround following a food safety crisis and with driving several years of strong digital sales growth. He was brought to Starbucks to reverse its declining performance, and over the past two years has focused on improving the customer experience by streamlining menus and reducing wait times, resulting in four consecutive quarters of comparable sales growth. “We still have more work to do,” Niccol said in July, after the company raised its annual sales and profit forecast. “Given that Starbucks is in a period of transformation and has yet to deliver the margin improvements investors expect, the timing of this decision seems somewhat strange. At first glance, it appears to be less about accelerating transformation and more about running out of options,” said Brian Jacobsen, Chief Economist at Annex Wealth Management.
Added charts and provided a detailed introduction of Chipotle and Starbucks' businesses
Reuters, October 8 - According to the Financial Times on Thursday, Starbucks SBUX.O has explored acquiring Chipotle Mexican Grill CMG.N, a move that would see CEO Brian Niccol return to the burrito chain—he ran the brand before joining the coffee giant two years ago.
The Financial Times, citing sources familiar with the matter, reported that in recent months the coffee chain has been working with advisory teams to discuss a proposal for the acquisition of Chipotle.
Starbucks and Chipotle did not immediately respond to Reuters' requests for comment.
Chipotle is valued at nearly $39 billion, its shares rose around 6% on Thursday, while Starbucks stock fell by about 3%. According to London Stock Exchange Group (LSEG) data, Starbucks' market cap is approximately $107 billion.
As consumers cut back on discretionary spending, the burrito chain has been challenged by declining traffic, while rising food and labor costs have also pressured industry profit margins. Its stock has fallen by about 17% so far this year.
Analysts say a potential acquisition could further accelerate Chipotle's international expansion.
"What I see as a positive in this potential transaction is CEO Brian Niccol having an opportunity to leverage Starbucks’ franchise partnerships in Europe to grow Chipotle’s business more aggressively," said Jim Sanderson, an analyst with Northcoast Research.
As of the end of last year, Chipotle had nearly 4,000 restaurants in the US and around 100 overseas. Meanwhile, Starbucks operates about 40,000 stores globally, with roughly 18,000 in North America.
Brian Niccol joined Starbucks in 2024 after six years at Chipotle. During his time at Chipotle, he earned praise for leading the company back into the black after a food safety crisis and expanding its digital business, helping achieve several years of strong sales growth.
He was hired by Starbucks to help turn around the company. Over the past two years, he has focused on streamlining menus and reducing wait times to improve the customer experience, driving comparable sales growth for four consecutive quarters.
"We still have more work to do," Brian Niccol said in July (link) after the company raised its annual sales and profit outlook.
"Given Starbucks is in the midst of a transformation and has yet to show the profitability improvement investors want, the timing of this move seems a bit odd. At first glance, it looks less like an acceleration and more like ‘running out of steam,’" said Brian Jacobsen, chief economist at Annex Wealth Management.
(To facilitate non-native English speakers, Reuters provides automated translations of its reporting in several other languages. Because automated translation may contain errors or omit necessary context, Reuters does not guarantee the accuracy of the automated translation text and provides it only for reader convenience. Reuters accepts no liability for any damages or losses caused by the use of the automated translation function.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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