Starbucks stated on Monday that it has no plans to acquire Chipotle Mexican Grill, a move that would have marked the largest restaurant industry takeover ever.

“Starbucks is not buying Chipotle,” a spokesperson for the coffee chain confirmed to CNBC.

Following this clarification, Chipotle’s stock dropped over 2% in premarket trading on Monday, while Starbucks shares saw a gain of more than 1%.

The coffee giant’s statement comes after several days of rumors regarding a potential massive deal between the two restaurant companies.

Last Thursday, the Financial Times reported, citing sources familiar with the situation, that Starbucks had been collaborating with advisors on a proposal to acquire Chipotle in recent months.

Earlier in October, Semafor reported that Chipotle had brought in advisors to protect against activist investors or an unsolicited takeover attempt. The fast-casual chain is striving to bounce back from a challenging 2025, during which customer traffic to its locations declined. Chipotle shares have fallen approximately 20% over the past year, making it a more affordable acquisition target.

The speculation about the deal initially drove Chipotle’s shares up, while Starbucks’ stock declined in response to the reports.

Chipotle investors were enthusiastic about the possibility of a reunion with Brian Niccol, who formerly helmed Chipotle and currently serves as CEO of Starbucks. However, Starbucks shareholders were primarily worried about a costly diversion while the coffee chain is focused on its own recovery efforts.