Starbucks has explored a takeover of Chipotle Mexican Grill, the Financial Times reported on October 8, in a move that would reunite CEO Brian Niccol with the burrito chain he once led. Starbucks worked with advisers in recent months on a takeover proposal, the FT said, citing people familiar with the matter.

Neither company commented. Chipotle, valued at nearly $39 billion, saw its shares rise about 6% on the news, while Starbucks, worth about $107 billion, fell about 3%. Niccol led Chipotle from 2018 to 2024, steering it through food-safety crises and expanding its digital business, before joining Starbucks to lead its turnaround.

Analysts said a deal could cost heavily and distract from Starbucks’ own recovery. It would also rank among the largest restaurant deals ever if it went ahead. A deal would value Chipotle near $41 billion, potentially the largest restaurant deal ever. Chipotle has nearly 4,000 US restaurants, while Starbucks has about 40,000 stores globally.

Regulatory approval would also be required if talks progress.