Starbucks has explored Chipotle takeover, FT reports

Oct 8 — Starbucks has explored a takeover of Chipotle Mexican ​Grill, the Financial Times reported on Thursday, citing sources familiar with the matter.

A ‌deal would unite two of the US restaurant industry's best-known ⁠brands and deepen Starbucks ​CEO Brian Niccol's ties ⁠to Chipotle, where he built his reputation ‌before taking the ‌helm at the coffee chain.

The coffee chain ⁠has worked with advisers ⁠in recent months on a takeover proposal for Chipotle, the FT reported, citing people familiar with the matter.

Starbucks and Chipotle did not immediately respond to Reuters requests for comment.

Shares ‌of Chipotle, which has ​a market capitalization of nearly $39 billion, were up about 4% in early trading, while those of Starbucks were down about 3%. Starbucks is worth about $107 billion, according to LSEG data.

Niccol was brought in to turn around the ​coffee chain and in the last two years ‌has aimed ‌to ⁠improve customer experience through a simplified menu and shortened wait times, fueling four straight quarters of comparable sales growth.

Meanwhile, the burrito chain has been ‌battling muted consumer ​demand and rising input ‌costs amid still ⁠high inflation.

(Reporting ​by Neil J Kanatt in Bengaluru; Editing by Arun ​Koyyur)

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