Starbucks explored a takeover of Chipotle, FT reports
The approach follows a store-closure plan and a dividend increase announced within the past two weeks
Published
Chart: SBUX, one-minute prices, three sessions
Starbucks has explored a takeover of Chipotle, the Financial Times reported.
Speculation about a tie-up had already been building. Chipotle had enlisted bankers to fend off a potential takeover, Seeking Alpha reported, and that news first stirred talk of a deal. Chipotle shares rebounded from early losses to climb 1% on Monday amid the merger speculation, GuruFocus reported.
Starbucks chief executive Brian Niccol previously ran Chipotle, a connection that has fed talk of the two chains combining, World Coffee Portal reported. Starbucks shares jumped 20% in August 2024 when Starbucks hired Niccol away from Chipotle, while Chipotle shares fell more than 7% on that news, Fortune reported.
The reported approach comes weeks after Starbucks disclosed plans to cut 250 North American stores as part of its "Back to Starbucks" turnaround, and days after it raised its quarterly dividend to $0.63 a share. Pursuing a large acquisition while closing domestic locations and lifting cash returns suggests a company testing several options at once rather than settling on a single path. No deal terms, financing or valuation have surfaced, so the exploration alone does not resolve the sales pressure that led to the store cuts.