Starbucks Denies Chipotle Takeover: "Not Buying" — SkimNews
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- Starbucks denied it is acquiring Chipotle Mexican Grill, with a spokesperson telling CNBC's Jim Cramer: "Starbucks is not buying Chipotle."
- Chipotle's stock fell nearly 4% in Monday morning trading after the denial, while Starbucks shares rose about 1%.
- The denial follows a Thursday Financial Times report that Starbucks had been working with advisors on a Chipotle takeover proposal in recent months — what the FT described as the biggest-ever restaurant takeover.
- Earlier in October, Semafor reported Chipotle had hired advisors to defend against activist investors or an unwanted takeover bid, as the chain works to recover from falling restaurant traffic and a roughly 20% share-price decline over the past year.
- Chipotle investors had welcomed the rumored deal as a path to a reunion with former CEO Brian Niccol, now Starbucks' CEO, while Starbucks shareholders largely viewed a bid as an expensive distraction during the coffee chain's own turnaround.
Why it matters: The denial punctures days of speculation that had lifted Chipotle's beaten-down stock (down about 20% over the past year) and pressured Starbucks shares, signaling to Chipotle that its recently hired defensive advisors were bracing for a threat that isn't materializing — at least not from Starbucks.
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