Starbucks put the brakes on the speculation, saying it is not pursuing Chipotle. The coffee chain said it is "laser focused" on executing its turnaround plan, which it says has put sales growth back on track after a long slump. That message came as the company addressed chatter that it had explored a bid for Chipotle.
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The buzz started with an Oct. 8 Financial Times report asserting that Starbucks - with Brian Niccol, who previously served as Chipotle's chief executive, at the helm - explored a takeover proposal. That headline initially lifted Chipotle's shares on Oct. 8. Analysts were doubtful from the start, flagging big strategic and operational differences between the two businesses.
On Monday morning, Chipotle slipped 3.1% by 9:42 a.m. in New York, while Starbucks was roughly flat. The move followed the earlier pop after the Oct. 8 report. Niccol had previously led a turnaround at Chipotle that made it one of the industry's standouts for years. After Niccol's departure in 2024, Chipotle logged several quarters of sales declines, but more frequent menu launches and loyalty program updates have helped performance improve recently.
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