Starbucks has looked at buying Chipotle, and Chipotle's shares rose 6.21%

Chipotle Mexican Grill rose 6.21% to US$32.68 on Thursday. The Financial Times reported that Starbucks has worked with advisers in recent months on a possible takeover of the burrito chain, which was worth nearly US$39 billion before the report.

Why would a coffee chain want burritos? The link is Brian Niccol. He ran Chipotle for six years and joined Starbucks as chief executive in September 2024. He is widely credited with Chipotle's long run of sales growth.

Chipotle has struggled since he left. Its shares closed on Wednesday 37% below where they finished on the day his move was announced. Reuters reports softer traffic as diners cut back, and higher food and labour costs.

Chart: Chipotle's sales climbed. Its share price slid. Two scales: revenue in US$bn on the left, 2021 to 2025; share price in US$ on the right, US$60.30 at the end of 2024 and US$32.68 on 8 October. — This story’s chart of the day: the numbers, the dark version and the animated version are on its own page. The chart’s page →

Starbucks shares had a wild day. They fell as much as 6.7% to US$87.35, then recovered to close 0.40% lower at US$93.21. Neither company responded to Reuters.

Starbucks is worth about US$107 billion, so a deal is possible. Lale Akoner of eToro said one could require heavy borrowing or issuing new shares.

Not so fast

exploring a deal is a long way from making an offer. Starbucks is still paying for its own turnaround, and Niccol would have to persuade his shareholders that fixing two chains at once beats fixing one.

This story ran in Counting the Revenue Friday 9 October’s edition, with the market snapshot, the other two stories, the numbers and the week ahead. Read the whole edition →

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