Brief
Starbucks says it remains focused on turnaround after FT merger rumor
Starbucks dismissed speculation about a Chipotle deal and reiterated its Back to Starbucks strategy.
By Felo News Desk · Published
Starbucks said it is "laser‑focused on executing our Back to Starbucks strategy" after the Financial Times reported the coffee chain had explored a takeover of Chipotle Mexican Grill. The company added that it does not comment on "rumors and speculation" and will share its next earnings results later in October.
What happened
The Financial Times story said Starbucks hired advisers in recent months to work on a proposal to acquire Chipotle, a move that would combine two major restaurant brands. NBC News could not confirm the report. Chipotle did not respond to a request for comment.
What the reports add
According to the NBC News article, a rumor of the deal sent Chipotle shares up 6.2% before the story broke. Starbucks shares fell as much as 6.6% on Thursday but closed only slightly lower. The article noted that a merger would reunite Chipotle CEO Brian Niccol with the company he led before moving to Starbucks in 2024.
What was said
Starbucks said, "Our team is laser‑focused on executing our Back to Starbucks strategy. We have strong momentum and confidence in our long‑term growth potential," as reported by NBC News.
How it came about
The speculation follows Starbucks' broader turnaround plan, which includes redesigning stores, new service standards, a refreshed menu and a reboot of its rewards program. The company has seen its stock rise about 11% year‑to‑date, outpacing the S&P 500 Consumer Discretionary sector’s decline.
Key facts
- Starbucks said it remains focused on its Back to Starbucks turnaround plan. (nbcnews.com)
- The Financial Times reported Starbucks had hired advisers to explore a Chipotle takeover. (nbcnews.com)
- Starbucks shares fell up to 6.6% after the report but closed only slightly lower. (nbcnews.com)
- Chipotle shares rose 6.2% before the report and have fallen more than 11% this year. (nbcnews.com)
Sources
- [1] nbcnews.com — originally reported as “Starbucks says it’s focused on turnaround after report it explored Chipotle merger”
