Starbucks considered acquiring Chipotle

In recent months, Starbucks has been working with advisors on a potential acquisition of Chipotle Mexican Grill, though it remains unclear whether Starbucks submitted a formal offer to Chipotle. Neither company has confirmed the information.

Chipotle's market value is approximately $39 billion, while Starbucks' is close to $107 billion. The deal would be one of the largest in the restaurant industry. In addition, Starbucks CEO Brian Niccol would once again find himself connected to a company he led for years. Niccol headed Chipotle for more than six years before moving to Starbucks two years ago.

Acquiring Chipotle would be costly for Starbucks. The company is already in the midst of a transformation, spending at least $500 million to improve service. Sales have grown for four consecutive quarters, though profit has not yet returned to desired levels. According to analysts' estimates, Starbucks would need to either take on a large loan or issue new shares in order to acquire Chipotle.

Source: Yahoo Finance