# Starbucks Eyes Chipotle Acquisition

> Starbucks reportedly plans to acquire Chipotle, the biggest restaurant deal in history, sparking investor skepticism.
- Title: Starbucks Eyes Chipotle Acquisition · Nation's Restaurant News
- Summary: Starbucks reportedly plans to acquire Chipotle, the biggest restaurant deal in history, sparking investor skepticism. Starbucks is reportedly eyeing a…
- Keywords: starbucks, chipotle, acquisition, mergers, fast casual, stock, investor, valuation, food, business, Eyes, Nation's Restaurant News
- Source: Nation's Restaurant News — https://nrn.com/mergers-acquisitions/starbucks-is-reportedly-eyeing-a-chipotle-acquisition
- Read time: 1 min
- Topics: starbucks, chipotle, acquisition, mergers, fast casual, stock, investor, valuation, food, business
## Starbucks reportedly eyeing Chipotle
Starbucks is reportedly eyeing a Chipotle acquisition, the biggest restaurant deal in history.

> Starbucks is reportedly eyeing a Chipotle acquisition
## Financial Times reports early-stage plans
The Financial Times reported Starbucks worked with advisors on a takeover proposal for Chipotle, calling it 'early-stage plans'.

> early-stage plans
## Chipotle shares surge 7%
Chipotle's shares soared more than 7% on the report that Starbucks may buy the company.

> Chipotle's shares soared on a report that Starbucks may buy the company
## Starbucks shares fall 5%
Starbucks' shares fell 5% as investors were less convinced of the acquisition.

> Starbucks' shares fell 5%
## Starbucks spokesperson comments
A Starbucks spokesperson said they don't comment on rumors and are focused on their 'Back to Starbucks' strategy.

> As a matter of policy, we don’t comment on rumors and speculation
## Brian Niccol's role
Brian Niccol, who left Chipotle two years ago to join Starbucks, helped turn both brands around.

> Brian Niccol, who left Chipotle two years ago to take the helm at Starbucks
## Chipotle's stock decline
Chipotle's shares have dropped 45% through Wednesday as same-store sales slowed.

> Chipotle's shares down 45% through Wednesday
## Chipotle's sales performance
Chipotle's same-store sales have been no higher than 2.2% in each of the past six periods, half negative.

> same-store sales have been no higher than 2.2% in each of the past six periods
## Analyst skepticism
Analysts say the strategic rationale for Starbucks acquiring Chipotle isn't clear due to limited business overlap.

> The strategic rationale for [Starbucks] acquiring [Chipotle] isn’t apparent to us given limited overlap between the businesses
## Potential cost of acquisition
Starbucks would likely pay a premium to buy Chipotle, potentially costing billions in debt.

> Starbucks would likely have to pay a substantial premium to buy the chain
## Starbucks' recent improvements
Starbucks has improved same-store sales in each of the past four quarters, including 7.9% last quarter.

> same-store sales at the chain have improved in each of the past four quarters in the U.S
## Key takeaway

Starbucks is reportedly eyeing a Chipotle acquisition, which could be the biggest restaurant deal in history but faces skepticism from investors.