Could we soon be able to get Frappuccinos and burrito bowls in the same place? Rumor has it that Starbucks and Chipotle are considering a merger that would send ripples through the restaurant industry.
The Financial Times reported on a potential merger Thursday. In a statement provided to news outlets after the report Starbucks didn’t seem to confirm or deny the report.
“Our team is laser-focused on executing our Back to Starbucks strategy,” Starbucks said in a statement cited by both The Wall Street Journal and NBC News. “We have strong momentum and confidence in our long-term growth potential.”
According to NBC, it wasn’t able to confirm the reports of a merger in the works between Starbucks and Chipotle. Interestingly, Starbucks’ current CEO Brian Niccol used to be the CEO of Chipotle.
“A tie-up between the two companies would mean a massive shakeup in the restaurant industry, which is grappling with consumers changing their spending and eating habits,” NBC News noted.
Experts cited by Adweek this week noted that Seattle-grown Starbucks was a game changer when it began its large-scale national expansion in the 1990s. For years the brand experienced growth, and became a name synonymous with coffee culture as well as armchair-filled cafes, curated playlists, specialty coffee blends and drinks like the Frappuccino that blurred the line between milkshake and coffee.
Chipotle was started up in the 1990s by a Culinary Institute of America grad who was inspired by San Francisco taquerias. Even as the restaurant’s pricing increased in recent years (and as complaints about skimpy scoops went viral on social media), The Wall Street Journal reported in 2024 that “gym rats and millennials” were still loyal customers of the chain and its modern Tex-Mex menu.
Then, the tide began to turn last year, according to a report in Fortune. It said that Chipotle CEO Scott Boatwright said Gen Z and millennials were cutting back on their Chipotle habit due to pressures like student loans and unemployment.
However, Chipotle’s BOGO deal earlier this year did result in the highest single-day sales the company has ever seen.
Starbucks has also struggled a bit amid economic pressure on consumers in recent years. During a third quarter earnings call last year, the company revealed that global comparable sales dropped 2%. Under Niccol’s leadership, Starbucks has implemented that “Back to Starbucks” strategy.
In a July press release regarding this year’s third quarter, Niccol touted its success.
“Our Back to Starbucks plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day. Our third quarter results are proof they do,” he said. “We have more work to do, but we’re relentlessly focused on reclaiming the third place and becoming the world’s greatest customer service company.”
This Thursday, Starbucks said it plans to release its fourth quarter and full fiscal year 2026 financial results after market close on Thursday, October 29, 2026. Polling results published by YouGov last month show that Starbucks is still a well-liked brand among younger consumers.
Meanwhile, experts are puzzling over the news that the two chains could possibly merge, according to Barron’s and MarketWatch. For example, Barron’s asked if a merger actually makes sense.
“Analysts say the deal would be tough to pull off, given the chains’ sizes and current struggles,” said MarketWatch. “They noted that while Starbucks CEO Brian Niccol once led a turnaround at Chipotle, managing two different restaurant chains might be too much for one CEO.”
Investor’s Business Daily reported that Chipotle stock surged Thursday after the reports that coffee giant Starbucks might merge. It also said “Starbucks stock pared its early Thursday retreat after the news.”
