Starbucks Corp. said it's not buying Chipotle Mexican Grill Inc., tamping down speculation about what could have been one of the restaurant sector's largest-ever deals.
The company issued a statement on Monday following a report last week that Starbucks, run by former Chipotle Chief Executive Officer Brian Niccol, had worked on a takeover proposal.
In responding to the Financial Times report last week, the coffee chain said it was “laser focused” on executing its ongoing turnaround plan, which has revived sales growth after a lengthy slump.
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Chipotle shares fell 3.1% as of 9:42 a.m. in New York trading on Monday while Starbucks shares were little changed. The burrito chain's stock jumped following the Oct. 8 report by the FT.
Analysts had expressed skepticism about a potential deal, citing major differences between the two businesses.
At Chipotle, Niccol spearheaded a revitalization that turned the company into one of the restaurant industry's top performers for several years.
While Chipotle posted several quarterly sales declines after Niccol's 2024 departure, the company has performed better lately due to more frequent product launches and updates to its loyalty program.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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