Starbucks Explores Record Takeover of Chipotle; CMG Jumps 7.2%, SBX Falls 4.4%

Starbucks (SBX) has explored a potential takeover of Chipotle Mexican Grill, a deal that could become the largest in restaurant industry history, RTTNews reported. It remains unclear whether Starbucks has made a formal offer, and talks could still fail. Chipotle shares rose 7.2 percent on the report, valuing the burrito chain at about $41 billion. Starbucks shares fell 4.4 percent, leaving the coffee company with a market value of roughly $102 billion. A transaction would surpass Burger King's $11.4 billion purchase of Tim Hortons in 2014. The combined company posted nearly $50 billion in sales last year, with Starbucks operating about 41,000 stores and Chipotle roughly 4,200 restaurants. The deal would reunite Starbucks CEO Brian Niccol with Chipotle, where he served as chief executive for more than six years and led a turnaround. Starbucks is pursuing its own recovery under Niccol's "Back to Starbucks" strategy. Analysts have questioned the strategic rationale, citing limited obvious revenue synergies despite potential cost savings.