Why a Starbucks takeover of Chipotle would — and wouldn't — make sense for both companies
Starbucks has reportedly been working with advisers on a takeover proposal for Chipotle, but a potential deal comes with pros and cons for investors.
Starbucks has reportedly been working with advisers on a potential takeover proposal for Chipotle. The status of any offer is unclear.
A deal would be significant, with Chipotle's market cap standing at roughly $41 billion, according to Quartz. This would make it the largest acquisition in restaurant industry history.
The report of a potential deal caused Chipotle's stock to rise more than 7%, while Starbucks' stock traded lower. Trading in Starbucks options was heavy, with a roughly balanced mix of calls and puts, indicating that traders were both hedging and speculating on the news.
Brief written by urgent.news from CNBC, CNBC World, Investing.com, Quartz — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- Why is Starbucks eyeing Chipotle? $39 billion takeover report sends stocks in opposite directions hindustantimes.com
- William Blair reiterates Starbucks stock rating amid Chipotle deal talk investing.com
- Why a Starbucks takeover of Chipotle would — and wouldn't — make sense for both companies cnbc.com
- Chipotle stock jumps after report that Starbucks explored a takeover qz.com
- SA Asks: Besides Starbucks, who else could make a bid for Chipotle? seekingalpha.com
