Starbucks has worked with advisers on early-stage plans to buy Chipotle, which CEO Brian Niccol ran for six years before taking over Starbucks in 2024, according to the Financial Times. Chipotle shares rose up to 8% on the report while Starbucks shares fell, but both have since drifted back to about where they started. Phil Wahba at Fortune argues the deal would pull Starbucks off a turnaround it told Fortune it’s “laser focused” on, since a likely offer near $50 billion for Chipotle’s roughly $40 billion market value would mean heavy borrowing while it’s still paying to remodel its cafes. Wahba sees little to combine, since Starbucks sells mostly premade food while Chipotle cooks to order, and William Blair estimates only about $300 million in yearly savings.
