Starbucks Explored Chipotle Takeover in What Would Be Largest Restaurant Deal Ever

Starbucks has worked with advisers in recent months on a takeover proposal for Chipotle Mexican Grill, the Financial Times reported on October 8, in what would rank as the largest restaurant acquisition in history. Chipotle carries a market value of roughly $39-40 billion, and no formal bid has been made. The potential deal places Starbucks CEO Brian Niccol in the unusual position of potentially acquiring the company he led before joining Starbucks in 2024.

The report sent the two stocks sharply in opposite directions. Chipotle shares surged as much as 8.6% on the news, while Starbucks stock fell as much as 5.9%, its steepest single-day drop since March, as investors weighed the cost and strategic logic of such a large acquisition. Options activity in Starbucks was notably elevated, with 50,139 contracts traded on the day.

Analyst reaction was mixed. UBS lowered its Starbucks price target on valuation concerns, while BTIG reiterated its Buy rating with a $115 target and William Blair also stood by its existing rating. Separately, new data cited by CNBC showed Starbucks' ongoing turnaround effort is gaining traction, though the takeover report overshadowed that positive signal. Semafor had previously reported that Chipotle hired bankers to prepare defenses against a potential approach, though people close to the company said at the time no formal bid had been received.

In a separate development, Starbucks announced its board approved a quarterly dividend increase from $0.62 to $0.63 per share, payable November 27, 2026, to shareholders of record on November's record date.