Starbucks is reportedly eyeing Chipotle, a nearly $39 billion company, and the deal would put CEO Brian Niccol back with the chain he used to run

As reported by Dexerto, Starbucks has reportedly been working with advisers on a possible takeover of Chipotle Mexican Grill, which is currently valued at nearly $39 billion. The deal would bring CEO Brian Niccol back to the company he previously led.

The Financial Times reported the talks. Neither company has publicly confirmed them, and it remains unclear whether Starbucks will move forward with a formal offer.

Chipotle shares climbed about 6% on October 8, while Starbucks shares fell about 3%. Starbucks has a market capitalization of about $107 billion, compared with Chipotle’s nearly $39 billion.

Niccol would return to the company he led for six years

Niccol became Starbucks CEO in September 2024 after six years leading Chipotle, where he helped the company recover from food safety controversies and expand its digital ordering business. Since joining Starbucks, he has focused on improving customer satisfaction, reducing wait times, and restoring the coffeehouse experience through added staffing and store improvements.

Starbucks has committed at least $500 million to labor investments as part of those efforts, which has placed additional pressure on profitability. The company has recorded four consecutive quarters of comparable sales growth under Niccol, but he acknowledged in July that the turnaround is unfinished, saying, “We have more work to do.”

Both chains are dealing with rising operating costs and changing consumer spending habits. We have seen restaurants compete for customers with promotions like Taco Bell’s free rent guacamole promotion. Chipotle has also faced declining customer traffic and higher food and labor costs since Niccol left in 2024, and its shares have nearly halved since his departure.

Chipotle had nearly 4,000 US restaurants and about 100 international locations at the end of 2025, compared with roughly 40,000 Starbucks stores worldwide. Jim Sanderson, an analyst at Northcoast Research, said Niccol could “leverage Starbucks’ licensed partnerships in Europe to expand Chipotle more aggressively.”

Other analysts raised concerns about the financial side of a deal. Lale Akoner, a global market strategist at eToro, said, “A deal could require heavy borrowing or issuing shares.” She added that without a compelling financial case, investors may view the deal as an expensive distraction.