Starbucks Denies Chipotle Takeover Talk After Shares Jumped on Rumor

Chipotle shares jumped after reports surfaced that Starbucks could be preparing to acquire the company, a deal that would have ranked as the largest-ever merger in the restaurant sector. Starbucks moved quickly to kill the speculation, stating plainly that it is not buying Chipotle. The denial matters because the rumor had already moved Chipotle's stock before any confirmation existed. Traders who bought into the speculation are now left holding a position based on a deal that, by Starbucks' own account, isn't happening. What remains unclear is what sparked the report in the first place, and whether any informal talks took place that Starbucks is now distancing itself from. No details on deal size, structure or timing were ever substantiated.