Why a deal could work
Starbucks is reportedly exploring a potential acquisition of Chipotle Mexican Grill, though analysts suggest the likelihood of a deal is low. The move would combine two major U.S. restaurant chains, with current Starbucks CEO Brian Niccol having previously led a successful turnaround at Chipotle.
Why it matters
A merger between two of the largest U.S. restaurant chains would significantly reshape the fast-casual dining landscape and impact investor confidence in both brands.
Starbucks has reportedly explored buying Chipotle Mexican Grill , but investors are split on whether the megadeal would make sense for both companies.
The coffee giant has been working with advisers on a takeover proposal of the fast-casual chain in recent months, the Financial Times reported on Thursday, citing people familiar with the matter.
If Starbucks bought Chipotle, it would combine two of the largest U.S. restaurant chains. With about $31 billion in annual domestic sales, Starbucks is the second-biggest U.S. chain by sales. Chipotle sits in the number seven spot, with more than $11 billion in annual system-wide sales in its home market.
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