Starbucks reportedly eyes Chipotle acquisition that would reconnect CEO with former company

Starbucks is reportedly exploring a deal to acquire Chipotle Mexican Grill, a potential combination of two of the largest restaurant businesses in the U.S.

The Seattle-based coffee giant has been working with advisers on a takeover proposal over the past few months, according to the Financial Times.

It remains unknown whether Starbucks has submitted a formal bid to purchase Chipotle.

Potential deal would unite two major U.S. restaurant chains

Starbucks and Chipotle, the second- and seventh-largest U.S. restaurant chains by sales, respectively, would have combined annual U.S. systemwide sales of more than $41 billion.

The rumors alone sent Chipotle stock up roughly 6% following the news, though Starbucks’ share price ended in the red Thursday after recovering from a steeper drop earlier in the day.

D.A. Davidson analyst Matt Curtis put the likelihood of a deal at roughly 20%, describing the odds as “relatively low” in a Thursday note to clients.

If the deal were to come to fruition, it would combine Starbucks’ $102 billion market capitalization with Chipotle’s $41 billion, creating a company that had roughly $50 billion in sales in 2025 and about 41,000 stores across the globe, according to The Puget Sound Business Journal.

The deal would be the largest restaurant acquisition in history if completed, eclipsing Burger King’s $11.4 billion purchase of the Canada-based coffee chain Tim Hortons in 2014.

In a statement to MyNorthwest, a Starbucks spokesperson stated that the company does not comment on rumors or speculation.

“As a matter of policy, we don’t comment on rumors and speculation. Our team is laser-focused on executing our Back to Starbucks strategy. We have strong momentum and confidence in our long-term growth potential. We look forward to sharing our Q4 results, including FY27 guidance, later this month.”

Chipotle did not immediately respond to a request for comment from CNBC.

Niccol’s Chipotle ties extend to Starbucks leadership team

Starbucks CEO Brian Niccol is no stranger to Chipotle, having previously spent more than six years leading the company and helping rebuild its reputation following a series of foodborne illness outbreaks.

Since joining Starbucks in 2024, Niccol has led its Back to Starbucks strategy, aiming to win back customers by reimagining the coffeehouse experience.

Two former Chipotle executives are also helping implement the strategy: Tressie Lieberman, who leads marketing, and Stephen Piacentini, who oversees coffeehouse development, according to The Puget Sound Business Journal.

Meanwhile, Starbucks has been rapidly decreasing its footprint across the U.S., closing hundreds of stores and laying off more than 2,600 employees in Washington since mid-2025.

In a previous letter to employees, Starbucks Chief Operating Officer Mike Grams said the targeted locations either aren’t delivering acceptable financial results or can’t provide the kind of experience Starbucks wants for customers and employees.

Follow Jason Sutich on X. Send news tips here.