It’s official - Starbucks isn’t buying Chipotle
Despite some previous media reports to the contrary, Starbucks Corp. will not be acquiring Chipotle.
A Starbucks spokesperson confirmed in an email to Chain Store Age that the coffee giant is not purchasing fast-casual Mexican restaurant chain Chipotle Mexican Grill. This statement follows reports that initiated in Financial Times on Oct. 8 indicating Starbucks had been working with advisors on developing a takeover proposal for Chipotle, which has a market valuation of nearly $39 billion compared to Starbucks’ market value of roughly $103 billion.
Possibly fueling speculation is the fact that current Starbucks CEO Brian Niccol joined the company in August 2024 following a six-year stint as CEO of Chipotle. Niccol’s accomplishments during his tenure as Chipotle chief executive included nearly doubling revenue, increasing profits nearly sevenfold, and growing the stock price by nearly 800%.
[READ MORE: Chipotle CEO to take reins of Starbucks]
In its most recent quarterly earnings, Starbucks reported adjusted net earnings of $0.85 per share, well ahead of analyst expectations of $0.66 per share. Consolidated net revenues declined 1% to $9.3 billion amid the sale of a controlling stake in its China business but still came in higher than projected revenues of $9.16 billion. Comparable store sales also rose.
Since Niccol’s departure, Chipotle has seen its stock value drop more than 25%, although same-store sales climbed 2.2% in the fast-casual chain’s latest fiscal quarter.
As of the end of June, Starbucks had a total of 41,304 stores (with 33% company-operated and 67% licensed) globally, with more than 16,000 located in the U.S. As of the same time period, Chipotle operated more than 4,200 company-owned restaurants in the U.S., Canada, U.K., France, Germany, and the Middle East, and also recently debuted in Asia with its first restaurant in Seoul, Korea. Most Chipotle stores are in the U.S.
Starbucks pursues ‘Back to Basics’
Starbucks is about two years into a turnaround strategy called “Back to Basics” that includes four-minute service, cozier cafes and a simplified menu. In September, the company announced plans to shutter approximately 250 of the cafes it operates across North America. For fiscal 2026, Starbucks now forecasts net new openings of 440 coffeehouses, down from its prior outlook of 600 to 650 locations.
The closures come as Starbucks in July reported its fourth consecutive quarter of comp growth and second consecutive quarter of margin expansion. In other developments, Starbucks is accelerating its remodel, or “uplift,” program, which is key to its turnaround strategy.
Unveiled in 2025, the program is designed to make over the company’s cafes to create physically welcoming spaces that bring back familiar touches such as generous seating and designs reflecting the local community.
Since late 2025, Starbucks has updated more than 1,000 coffeehouses across the U.S. and Canada. It’s now accelerating the pace, with the goal completing at least 1,500 uplifts by fiscal year-end 2026 and accelerating further in fiscal 2027.
“Our team is laser focused on executing our Back to Starbucks strategy,” a Starbucks spokesperson said in a recent public statement. “We have strong momentum and confidence in our long-term growth potential. We look forward to sharing our fourth-quarter results, including fiscal year 2027 guidance, later this month.”
