Wall Street was buzzing Thursday about a possible merger that would amount to much more than a hill of beans.Starbucks said it was focused on its turnaround plan, following a report in the Financial Times saying the coffee house chain explored a potential deal to take over Chipotle Mexican Grill.“Our team is laser-focused on executing our Back to Starbucks strategy,” Starbucks said in a statement.“We have strong momentum and confidence in our long-term growth potential.”The company added that it typically doesn’t comment on what it described as “rumors and speculation” and that it looks forward to sharing its next earnings results later in October.Starbucks’ comment came after the FT reported that Starbucks had hired advisers in recent months to work on a takeover proposal for Chipotle.
NBC News has not confirmed the report.A tie-up between the two companies would mean a massive shakeup in the restaurant industry, which is grappling with consumers changing their spending and eating habits.Before the report emerged, sending shares of Chipotle higher by 6.2%, the company had a total market value of about $39 billion.
For comparison, Starbucks’ market value stands at more than $105 billion.Chipotle did not return a request for comment on Thursday afternoon.A deal between the two companies would also reunite CEO Brian Niccol with the company he led before he jumped to Starbucks in 2024.Investors appeared worried that a deal could be a distraction for Niccol and his company, though.Starbucks shares fell as much as 6.6% Thursday, but closed the day only slightly lower.For SubscribersFOR SUBSCRIBERSWhat happened inside the room where officials tried to execute Christa Pike by lethal injectionFOR SUBSCRIBERSDiddy is punished following NBC News report on his VIP life in prison and contraband cellphone useFOR SUBSCRIBERS‘Too young to vote, old enough to be tear gassed’: French protesters’ anger swellsFOR SUBSCRIBERSDOJ gets aggressive in suing state...