Oct 12 (Reuters) – Starbucks is not buying Chipotle Mexican Grill, its spokesperson said on Monday, quashing speculation about what could have been the largest restaurant deal on record.
Shares of the coffee giant rose about 1% in premarket trading, while Chipotle fell about 2%.
A deal would have created a restaurant giant with about $50 billion in annual sales, positioning it to better navigate uncertain demand from inflation-hit consumers, rising operating costs and the squeeze on profits.
The burrito chain, whose market capitalization is around $40 billion, did not immediately respond to a Reuters request for comment.
Last week, the Financial Times reported that Starbucks had worked with advisers in recent months on a potential takeover proposal for the burrito chain. The report sent shares of Chipotle up more than 7% and Starbucks down about 3%.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Arun Koyyur)
Comments