Starbucks Rules Out Chipotle Bid, Sending Chipotle Shares Down 4.4%
Updated
Updated · The Seattle Times · Oct 12
Starbucks Rules Out Chipotle Bid, Sending Chipotle Shares Down 4.4%
3 articles · Updated · The Seattle Times · Oct 12
Summary
Monday’s confirmation from Starbucks ended takeover speculation sparked by a Financial Times report that said the company had explored a possible bid for Chipotle in recent months.
The denial matters because the deal would have been the largest restaurant takeover ever and could have made Starbucks the third-largest restaurant company by sales.
Brian Niccol’s ties to both chains had fueled the chatter—he led Chipotle for six years before becoming Starbucks CEO two years ago—but analysts had questioned the risk of such a large acquisition under a relatively new chief executive.
Starbucks said its team is focused on Niccol’s “Back to Starbucks” turnaround, centered on store upgrades, more staffing, smoother operations and shorter wait times; by 9 a.m. Monday, Starbucks shares were slightly higher while Chipotle fell 4.4%.