The Financial Times reports that Starbucks explored a possible takeover of Chipotle Mexican Grill. Informa Connect Foodservice editor-in-chief Jonathan Maze said the main synergy making such a deal possible is the leadership of Brian Niccol, who left Chipotle to become Starbucks CEO. Maze said Starbucks could fund a deal through a combination of debt and stock, though he cautioned that supply chain synergies between the two restaurant companies are limited and that such synergies tend to be overrated. He noted that Niccol took over Chipotle in 2018 after leading Taco Bell and turned the chain around following its E. coli crisis, which is one reason to believe the report is credible. Maze added that Chipotle has done little internationally despite years of effort, and that Starbucks, which operates internationally largely through operators outside the United States, has the infrastructure to help Chipotle expand abroad.
Chipotle Mexican Grill IncStarbucks reportedly explored a takeover of Chipotle, a potential M&A event for the target.
Starbucks CorporationStarbucks reportedly explored a Chipotle takeover, but limited supply-chain synergies and funding via debt/stock make the impact unclear.
