According to media reports citing people familiar with the matter, Starbucks (SBUX) has been working with advisors in recent months to study a potential acquisition plan for the U.S. Mexican-style restaurant chain Chipotle Mexican Grill (CMG).

Following the news, Chipotle Mexican Grill (CMG) shares surged as much as 8.6% during Thursday's trading session, while Starbucks (SBUX) shares fell as much as 6.7%, marking their largest intraday drop in more than a year.

As of the time of writing, Chipotle Mexican Grill (CMG) shares had pared gains to 5.3%, trading at $32.385.

The report noted that it remains unclear how far Starbucks' (SBUX) potential acquisition plans have progressed. Given the potentially massive size of the deal, the acquisition may ultimately fail to move forward.

As a result, discussions remain highly uncertain, and it is still unclear whether the two sides will reach a formal agreement.

Notably, Starbucks' (SBUX) current Chief Executive Officer Brian Niccol has close ties to Chipotle Mexican Grill (CMG). Niccol became Starbucks' (SBUX) CEO in 2024, having previously served as CEO of Chipotle Mexican Grill (CMG).

His familiarity with the company's business and operating model has also drawn market attention to this potential deal.

However, as of now, the report has not disclosed the acquisition price, financing arrangements, or specific timeline for the potential transaction, and whether Starbucks (SBUX) will formally make an acquisition offer remains to be seen.