Starbucks Corp.
has denied plans to acquire Chipotle Mexican Grill, ending days of speculation about a potential deal between the two restaurant companies.
The denial came after reports of preliminary takeover discussions and as investors weighed what a deal would mean for both businesses and their share prices.
According to premarket trading data cited by CNBC, Chipotle shares fell more than 2% after Starbucks rejected the acquisition rumors, while Starbucks shares rose more than 1%.
The proposed transaction, if completed, would have been the largest restaurant takeover ever.
Starbucks Statement Follows Media Reports
A Starbucks spokesperson directly addressed the speculation in a statement to CNBC's Jim Cramer.
"Starbucks is not buying Chipotle," the spokesperson told CNBC's Jim Cramer.
The statement followed a Financial Times report published Thursday that Starbucks had worked with advisers in recent months on a potential acquisition proposal for Chipotle.
The newspaper cited people familiar with the matter.
Separately, Semafor reported earlier in October that Chipotle had hired advisers to prepare for potential pressure from activist investors or an unwanted takeover bid.
Neither report established that a transaction had been agreed upon.
Chipotle has faced operational challenges following a difficult 2025, when customer traffic at its restaurants declined.
Its shares had fallen about 20% over the preceding year, according to the source report, making the company a less expensive potential acquisition target.
The speculation also highlighted the different priorities facing investors in the two companies.
Some Chipotle investors welcomed the prospect of a potential reunion with Brian Niccol, who previously led Chipotle and now serves as Starbucks' chief executive officer.
For Starbucks shareholders, however, a major acquisition raised concerns about the potential cost and distraction of a deal while the coffee chain continued its own turnaround efforts.
The opposing investor reactions contributed to the different stock movements reported during the takeover speculation.
