Starbucks has officially denied rumors that it is pursuing the acquisition of Chipotle Mexican Grill, quashing speculation of what would have been a landmark deal in the restaurant industry. A Starbucks spokesperson told CNBC’s Jim Cramer on Monday that the coffee giant is not buying Chipotle, following widespread media reports and market chatter suggesting otherwise. This denial came after shares of Chipotle initially surged on the takeover rumors, while Starbucks stock dipped, reflecting investor reaction to the potential merger.

The rumors gained traction after the Financial Times reported last Thursday that Starbucks had been working with advisors on a possible takeover proposal for Chipotle. Chipotle, which has struggled with declining customer traffic and a 20% drop in stock value over the past year, had also reportedly engaged advisers to shield itself from activist investors or an unwelcome acquisition bid. The potential deal excited Chipotle shareholders, who looked forward to a reunion with former CEO Brian Niccol, now leading Starbucks, but concerned Starbucks investors worried about the distraction during the company’s ongoing operational turnaround.

Despite the speculation, Starbucks’ public statement has quelled immediate fears of an impending megadeal. The denial stabilized market movements, with Chipotle shares falling nearly 4% Monday morning, while Starbucks stock rose by 1%. This clear rebuke highlights how quickly takeover rumors can move markets, especially when involving two prominent companies within the fast-casual and coffee sectors.

The episode underscores the delicate balance both firms face amid changing market dynamics and internal challenges. Chipotle is focused on regaining momentum after a rough 2025, and Starbucks continues to seek growth and efficiency improvements in a competitive landscape. While a merger or acquisition between these giants would have represented a seismic shift in the restaurant industry, Starbucks’ statement today confirms that any such strategic moves are not underway at this time.