Starbucks denied Monday that it is considering acquiring Chipotle Mexican Grill, putting to rest days of speculation about a potential megadeal between the two restaurant companies.
"Starbucks is not buying Chipotle," a Starbucks spokesperson told CNBC's Jim Cramer. The company said it is focused on executing its Back to Starbucks strategy and has strong momentum and confidence in its long-term growth potential.
"Our team is laser-focused on executing our Back to Starbucks strategy. We have strong momentum and confidence in our long-term growth potential. We look forward to sharing our Q4 results, including FY27 guidance, later this month," the Starbucks spokesperson said in a statement to CBS News.
The denial followed reports from the Financial Times on Thursday that Starbucks had been exploring a deal to purchase Chipotle, which has a market value of $47 billion. The takeover speculation sent Chipotle's stock soaring as much as 8% last week.
Following Starbucks' Monday statement, Chipotle's stock was down nearly 4% in morning trading, while Starbucks shares were 1% higher. The stock movements reversed the earlier pattern, when deal rumors had lifted Chipotle while pressuring Starbucks shares.
Industry analysts had expressed skepticism about the reported acquisition. TD Cowen analysts said in a research note last week that they considered a merger between Starbucks and Chipotle "a low-probability outcome," and instead expected Starbucks chief executive Brian Niccol to prioritize other strategic initiatives.