Starbucks has worked with advisors on a takeover proposal for Chipotle Mexican Grill, the Financial Times reported Thursday (Oct. 8), citing unnamed sources.

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The status of the proposal and any submission of a formal offer to Chipotle could not be determined, according to the report.

If Starbucks were to buy Chipotle, it would be the biggest-ever acquisition in the restaurant sector. Chipotle’s market value is $41 billion, according to the report.

The size of the deal might make it unlikely to happen, due to the complexity of bringing together two giant companies, the report said.

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Starbucks CEO Brian Niccol was Chipotle’s CEO for six years. He left Chipotle in August 2024 to join Starbucks, per the report.

Chipotle’s shares have fallen by nearly 20% over the past year, partly due to consumers’ lingering concerns after the chain removed ingredients from a supplier that was tied to a salmonella outbreak, the report said.

Reuters reported Thursday that Chipotle’s shares have dropped by nearly half since Niccol left the company. The report said that, like the rest of the restaurant industry, Chipotle has been dealing with the challenges of a consumer pullback on discretionary spending and the rising costs of food and labor.

A potential acquisition could accelerate Chipotle’s international expansion, as the chain has only 100 locations outside the United States while Starbucks has 22,000, the report said.

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