Starbucks says it’s focused on turnaround after report it explored Chipotle merger

Wall Street was buzzing Thursday about a possible merger that would amount to much more than a hill of beans.

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Starbucks said it was focused on its turnaround plan, following a report in the Financial Times saying the coffee house chain explored a potential deal to take over Chipotle Mexican Grill.

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“Our team is laser-focused on executing our Back to Starbucks strategy,” Starbucks said in a statement. “We have strong momentum and confidence in our long-term growth potential.”

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The company added that it typically doesn’t comment on what it described as “rumors and speculation” and that it looks forward to sharing its next earnings results later in October.

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Starbucks’ comment came after the FT reported that Starbucks had hired advisers in recent months to work on a takeover proposal for Chipotle. NBC News has not confirmed the report.

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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.

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Before the report emerged, sending shares of Chipotle higher by 6.2%, the company had a total market value of about $39 billion. For comparison, Starbucks’ market value stands at more than $105 billion.

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Chipotle did not…

Original source: https://www.nbcnews.com/business

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