Chipotle shares jump on report of Starbucks takeover interest

• Starbucks CEO Brian Niccol was widely credited with turning around Chipotle before taking on his current job, where he's been tasked with another turnaround effort.

Driving the news: Starbucks has discussed a potential takeover of Chipotle with advisers in recent months, FT reported Thursday.

• It was not immediately clear whether an offer had been made or whether the company is still considering it.
• Semafor's Rohan Goswami reported earlier in October that Chipotle had hired advisors to defend against potential activists or unwanted takeover approaches.

The big picture: A Starbucks-Chipotle deal would rank as the biggest acquisition in the history of the restaurant industry by a long shot.

• The previous record was Burger King's more than $11 billion deal for Tim Hortons in 2014.
• Chipotle's market cap was over $41 billion as of Thursday morning after the stock popped 7% on the FT report.
• Starbucks shares fell 3% after the report.

State of play: Chipotle shares have been ailing since Niccol departed in 2024 to take the reins at Starbucks.

• His turnaround strategy at Starbucks — focused on simplifying processes, speeding orders and creating a more welcoming space in the coffee shop — has shown early signs of momentum.

What they're saying: Reps for Chipotle and Starbucks did not immediately respond to requests for comment.