Starbucks Officially Denies Chipotle Takeover, Ending Speculation
SBUX sits 18% above its 52-week low of $77.99.
Summary
Starbucks said Monday it is not acquiring Chipotle, directly contradicting last week's Financial Times report that it had explored a takeover. The denial sent Chipotle shares down about 4% and lifted Starbucks about 1%, unwinding part of the prior speculation-driven moves. The company reiterated its focus on the 'Back to Starbucks' turnaround under CEO Brian Niccol, who previously led Chipotle. This closes the door on what would have been one of the largest restaurant deals ever, with combined annual sales near $50 billion. The market reaction suggests relief for Starbucks shareholders and disappointment for Chipotle holders who had bid up the stock on deal hopes.
At the time of this announcement, SBUX was trading at $92.35 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $105.2B. The 52-week trading range was $77.99 to $110.51. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: dpa-AFX.