Starbucks on Monday said that it would not be moving to buy Chipotle Mexican Grill, after a report last week said the coffee house chain had evaluated the prospect.
“As a matter of policy, we don’t comment on rumors and speculation, but we want to be clear we are not buying Chipotle,” a Starbucks spokesperson told NBC News in an emailed statement.
“Our team is laser focused on executing our Back to Starbucks strategy,” they said, while adding that the company looked forward to sharing its latest financial results later in October.
The announcement from Starbucks came after the Financial Times on Thursday reported that “Starbucks has explored a takeover of Chipotle Mexican Grill.” The report also stated that it had hired advisers to work on a takeover proposal for Chipotle.
Starbucks responded to the report later Thursday by issuing a statement that did not definitively address the status of its interest in Chipotle.
A deal between Starbucks and Chipotle would have been transformative for the restaurant and fast-casual dining sector. It would have also reunited Starbucks CEO Brian Niccol with Chipotle, the company he led until late 2024.
In the immediate aftermath of the FT report, Starbucks shares fell, while Chipotle’s stock surged sharply higher.
But over the last year, the two companies have been on different trajectories. Starbucks is in the midst of a vast turnaround program, which Niccol has touted in recent weeks as delivering progress. Over the last year, Starbucks shares have risen 15%.
On the other hand, Chipotle’s shares have plunged 20% over the last 12 months. Both companies are grappling with broadly higher prices for consumers, lagging traffic and are trying to revive sales.
Chipotle Mexican Grill did not immediately respond to a request for comment on Monday.