1141 ET - A Starbucks takeover of Chipotle Mexican Group seems unlikely, D.A. Davidson analysts Matt Curtis and Andrew Tompkins write in a note. They peg the odds of a deal at around 20%. Such a deal would be transformational for Starbucks, which shares few areas of overlap with Chipotle, they write. "SBUX has never pursued large, transformative acquisitions, as past acquisitions have been much smaller brands it could integrate into its existing business," they write. Still, there are some strategic rationales for the deal for both companies: a new growth lever for Starbucks and a substantial premium and international infrastructure for Chipotle. A deal would also be a homecoming for Starbucks CEO Brian Niccol, who oversaw Chipotle's turnaround from 2018 to 2024.
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