Starbucks denied it is buying Chipotle, sinking the burrito chain's stock
Chipotle stock fell more than 2% in premarket trading Monday after Starbucks said it is not pursuing a takeover of the burrito chain
On Monday, Starbucks denied takeover plans for the fast-food restaurant chain Chipotle Mexican Grill, stating, "We want to create clarity: We are not buying Chipotle." This response came in reaction to a report by the "Financial Times" last week, which suggested that Starbucks had been working with advisors on potential plans to acquire the chain known for its burrito wraps.
Starbucks had previously remained silent on the matter. If the acquisition had proceeded, it would have been the largest foodservice merger in history, combining the annual sales of approximately $50 billion from both companies. A Chipotle spokesperson declined to comment on the matter. Chipotle is currently valued at around $40 billion on the New York Stock Exchange, with the company's stock falling by two percent in pre-market trading on Monday.
The "Financial Times" report boosted Chipotle's shares by seven percent, while Starbucks shares dropped by around three percent. On Monday, the Starbucks stock showed a slight recovery. More: How the USA finances its consumption with foreign money.
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