The Financial Times reports that Starbucks has explored buying Chipotle Mexican Grill. The deal would reunite Starbucks chief executive Brian Niccol with the burrito chain he led before joining the coffee company two years ago.
Starbucks has worked with advisers on a possible offer in recent months. Neither company commented. Chipotle shares rose about 6% on the news, while Starbucks shares fell about 3%.
π The Backstory
Restaurant chains are struggling with cautious, inflation-hit customers and rising costs. Many are looking for new ways to grow. Niccol led Chipotle before taking the top job at Starbucks.
Chipotle is worth nearly $39 billion, while Starbucks is worth about $107 billion. Analysts say a deal would be costly for Starbucks, which is still spending heavily on its turnaround. One strategist called it a possible expensive distraction.
π― Why It Matters
Mergers can change prices, menus and jobs at places people visit every day. A big tie-up could affect millions of coffee and burrito customers.
The Financial Times reports that Starbucks has explored buying Chipotle Mexican Grill. The deal would reunite Starbucks chief executive Brian Niccol with the burrito chain he led before joining the coffee company two years ago.
Starbucks has worked with advisers on a possible offer in recent months. Neither company commented. Chipotle shares rose about 6% on the news, while Starbucks shares fell about 3%.
Restaurant chains are struggling with cautious, inflation-hit customers and rising costs. Many are looking for new ways to grow. Niccol led Chipotle before taking the top job at Starbucks.
Chipotle is worth nearly $39 billion, while Starbucks is worth about $107 billion. Analysts say a deal would be costly for Starbucks, which is still spending heavily on its turnaround. One strategist called it a possible expensive distraction.
Mergers can change prices, menus and jobs at places people visit every day. A big tie-up could affect millions of coffee and burrito customers.