Chipotle Mexican Grill Inc (NYSE:CMG) shares are moving higher Thursday. A report revealed that Starbucks has looked into buying the company. Here’s what you should know.

Chipotle Stock Rises As Starbucks Reportedly Explores A Takeover

Starbucks Corp (NASDAQ:SBUX) has examined whether to buy Mexican-inspired restaurant chain Chipotle. For months, the coffee chain has consulted advisers about making an offer for the burrito chain, which carries a market value near $39 billion, the Financial Times reported. The deal would join two of the country’s most recognizable brands.

The report could not confirm the status of the plans or whether Starbucks has made a formal offer. The people warned that a deal this large may never begin. Merging two consumer giants is difficult, and the tie-up could collapse before it takes shape.

Brian Niccol Would Reunite With Chipotle in a Starbucks Deal

The early-stage plans would send Starbucks CEO Brian Niccol back to the chain where he built his reputation. Niccol ran Chipotle for just over six years. His rescue of the company after a food-safety crisis made him one of the industry’s most admired executives. Chipotle stock has lost nearly half its value since his August 2024 departure.

Combined, the two companies generated almost $50 billion in sales last year. Starbucks runs roughly 41,000 company-owned and licensed stores, with about 40% in the U.S. Nearly all 4,200 Chipotle restaurants operate domestically.

Despite its scale, Chipotle’s stock has come under pressure this year. Chipotle shares are down around 12% this month and almost 20% over the past year. Consumer fears have weighed on the stock since the company pulled jalapeño peppers last summer from a supplier tied to a Salmonella outbreak. Chipotle started swapping suppliers at affected restaurants on July 20 and has stopped serving the product.

CMG Shares Are Jumping

CMG Price Action: Chipotle shares were up 5.88% at $32.55 at the time of publication on Thursday, according to Benzinga Pro.

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