Starbucks has looked into a possible takeover of Chipotle Mexican Grill, according to a Financial Times report.

A potential deal would reunite Starbucks CEO Brian Niccol with the burrito chain that he helped transform, and, with Chipotle's $41 billion market value, would represent the largest ever combination in the restaurant sector. Many questions remain, however, including the current status of Starbucks' efforts -- and the motivation behind such a proposal.

Starbucks has worked with advisers in recent months to discuss a takeover proposal for Chipotle, the FT reported, citing people familiar with the matter.

Neither Chipotle nor Starbucks immediately responded to requests for comment.

Shares of Chipotle jumped 6.8% to $32.86 Thursday, making it the top performer in the S&P 500 in the session. Starbucks stock fell 4.3% to $89.47, putting it on pace for its lowest close since April, according to Dow Jones Market Data.

If the deal took place, it would represent quite the reunion in the executive suite. Niccol oversaw a turnaround for Chipotle starting in February 2018 before exiting to start Starbucks' own turnaround in August 2024. Current Chipotle CEO Scott Boatwright was the company's chief operating officer during Niccol's time at the helm.

Niccol hired Tresie Lieberman, who earlier served as Chipotle's vice president of digital marketing, began working as Starbucks' global chief brand officer in October 2024. Stephen Piacentini, Chipotle's former chief development officer, joined Starbucks as an executive vice president in April of this year.

But a takeover could complicate Niccol's efforts to revive Starbucks, which is in the midst of its own sweeping turnaround under his "Back to Starbucks" strategy. Last month, he said the company had invested more than $500 million in additional staffing, scheduling, and other employee initiatives as part of the strategy. Starbucks has also started revamping locations and adding new menu items.

It's unclear how Starbucks would finance such a transaction while spending heavily on its own turnaround. The company announced a $1 billion restructuring plan in September 2025 that included closing underperforming North American locations. It closed about 250 cafes last month, saying the locations failed to achieve "acceptable financial performance."

In July, Starbucks reported $28.2 billion in assets through its fiscal third quarter, including $3.4 billion in cash and cash equivalents. The chain reported $32 billion in assets the previous year.

Chipotle, meanwhile, has lost some of its luster since Niccol's departure. Its shares surged 928% during his tenure, but has fallen 37% since he left, priming the restaurant chain as a more affordable takeover target.

While coffee and burritos don't sound like a natural combination, the two chains could complement each other. Starbucks and Chipotle both appeal to customers willing to pay more for convenience and customization, but they serve different dining occasions. That could potentially give a combined company greater exposure to consumer spending throughout the day.