Starbucks Says It Is Not Buying Chipotle. The Denial Sends Chipotle Shares Tumbling.

Starbucks has ruled out acquiring Chipotle Mexican Grill, putting an end to days of takeover speculation that sent shares of the Mexican fast-casual chain higher last week and raised questions about a potential multibillion-dollar restaurant industry deal.

"Starbucks is not buying Chipotle," a company spokesperson told CNBC Monday in a direct denial of reports that the coffee giant was considering a takeover of the burrito chain.

The announcement prompted an immediate reaction on Wall Street, with Chipotle shares declining sharply while Starbucks stock rose.

Chipotle shares were trading at $30.16, down $1.43, or 4.53%, as of 12:02 p.m. ET Monday, according to Stock Analysis market data. The stock had closed Friday at $31.59.

Starbucks shares, meanwhile, rose to $92.28, gaining $1.53, or 1.68%, as of 12:26 p.m. ET, according to market data. The coffee chain's stock had ended the previous session at $90.75.

The speculation gained momentum Thursday after the Financial Times reported that Starbucks had explored acquiring Chipotle and had been working with advisers on a potential proposal in recent months.

The newspaper cited people familiar with the matter, although there was no confirmation that Starbucks had submitted a formal acquisition offer.

At the time, Chipotle had a market valuation of approximately $41 billion, making a potential transaction one of the largest in restaurant industry history.

The report sent Chipotle shares up 6.21%, with the stock closing at $32.68. Starbucks shares finished the same session at $93.21, down 0.40%, according to historical market data.

Starbucks initially declined to comment directly on the acquisition speculation and instead emphasized its focus on the company's existing turnaround strategy. Monday's denial provided a much clearer statement, explicitly ruling out the reported acquisition.

The reported takeover also attracted attention because of Starbucks CEO Brian Niccol's history with Chipotle.

Niccol served as Chipotle's chief executive from 2018 until 2024 before leaving to lead Starbucks. His move placed him in charge of another major restaurant company facing challenges with customer traffic and its operating performance.

At Starbucks, Niccol introduced the "Back to Starbucks" strategy, focused on improving the coffeehouse experience, strengthening customer service, updating menus and investing in employees and stores. The company's latest quarterly results showed progress under that strategy.

According to Starbucks' third-quarter earnings release, global comparable-store sales increased 7.9% in the quarter ended June 28, driven by a 4.2% rise in comparable transactions and a 3.5% increase in average spending per transaction.

North American comparable-store sales rose 8.1%, while U.S. comparable-store sales increased 7.9%.

The company also reported consolidated net revenue of $9.3 billion, down 1% from the previous year, reflecting the transaction involving its China retail operations.

Starbucks said it had delivered four consecutive quarters of comparable-sales growth and two consecutive quarters of margin expansion.

Chipotle, meanwhile, has been pursuing its own growth strategy following a difficult period for restaurant traffic. The company reported stronger sales in the second quarter of 2026, with total revenue rising 9.3% to $3.3 billion.

Comparable-restaurant sales increased 2.2%, supported by a 1% rise in transactions and a 1.2% increase in average customer spending, according to Chipotle's July 29 earnings release.

The company also opened 100 company-owned restaurants during the quarter, including 80 locations equipped with Chipotlanes, its drive-through lanes for customers collecting digital orders.

Despite the revenue growth, Chipotle's operating margin declined to 15.7% from 18.2% a year earlier. Net income fell to $403.5 million from $436.1 million, while diluted earnings remained unchanged at 32 cents a share.

Chipotle CEO Scott Boatwright said the company's results reflected progress under its "Recipe for Growth" strategy, which includes menu innovation, improving restaurant hospitality, strengthening customer loyalty and expanding opportunities for group dining.