Starbucks says it won’t buy Chipotle, ending speculation over blockbuster deal

A Starbucks spokesperson confirmed with The Seattle Times on Monday that the company will not be acquiring Chipotle Mexican Grill, in what would’ve been one of the largest restaurant purchases on record.

On Thursday, rumors circulated that Starbucks was exploring a deal to link two of the largest restaurant businesses in the U.S.: Starbucks and Chipotle.

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

The confirmation on Monday put those rumors to rest, despite Starbucks stating that its company policy advises not to comment on rumors and speculation.

Chipotle did not respond to requests to comment last week. Its stock price rose on the news, while Starbucks’ slightly dipped before it recovered on the day The Financial Times broke the news.

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 had a combined annual U.S. systemwide sales of more than $41 billion.

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

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 with roughly $50 billion in sales in 2025 and about 41,000 stores worldwide, according to The Puget Sound Business Journal.

If completed, the deal would have been the largest restaurant acquisition in history, 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 shrinking its U.S. footprint, 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.

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