Starbucks ruled out buying Chipotle, dropping Chipotle shares to $30.16

Starbucks has officially ruled out acquiring Chipotle Mexican Grill, putting an end to days of takeover speculation that sent shares of the Mexican fast-casual chain higher last week, according to the International Business Times. Starbucks is not buying Chipotle, a company spokesperson told CNBC on Monday in a direct denial of reports that the coffee giant was considering a takeover of the burrito chain.

The announcement prompted an immediate reaction on Wall Street, with Chipotle shares declining sharply while Starbucks stock rose. Chipotle shares were trading at $30.16, down $1.43, or 4.53%, as of 12:02 p.m. ET Monday, according to Stock Analysis market data. The stock had closed Friday at $31.59.

Starbucks shares, meanwhile, rose to $92.28, gaining $1.53, or 1.68%, as of 12:26 p.m. ET. The speculation gained momentum Thursday after the Financial Times reported that Starbucks had explored acquiring Chipotle and had been working with advisers on a potential proposal in recent months.

At the time, Chipotle had a market valuation of approximately $41 billion, making a potential transaction one of the largest in restaurant industry history. The reported takeover also attracted attention because of Starbucks CEO Brian Niccol, who served as Chipotle's chief executive from 2018 until 2024 before leaving to lead Starbucks.

Niccol introduced the Back to Starbucks strategy, focused on improving the coffeehouse experience. Chipotle has been pursuing its own growth strategy under CEO Scott Boatwright, opening 100 company-owned restaurants during the quarter.