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Starbucks on Monday denied it is considering acquiring Chipotle Mexican Grill in what would be the biggest-ever restaurant takeover.

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“Starbucks is not buying Chipotle,” a Starbucks spokesperson told CNBC’s Jim Cramer.

Chipotle’s stock was down nearly 4% in morning trading Monday following the statement, while Starbucks shares were 1% higher.

The coffee giant’s denial comes after days of rumors about a potential megadeal between the two restaurant companies.

On Thursday, the Financial Times reported that Starbucks had been working with advisors on a Chipotle takeover proposal in recent months. The newspaper cited people familiar with the matter.

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Earlier in October, Semafor reported that Chipotle had hired advisors to defend against activist investors or an unwanted takeover bid. The fast-casual chain is trying to recover from a rocky 2025, when traffic to its restaurants fell. Chipotle shares are down about 20% over the last year, making it a cheaper target.

The deal rumors sent shares of Chipotle higher, while Starbucks stock fell on the reports.

Chipotle investors were looking forward to a potential reunion with Brian Niccol, who previously led Chipotle and is now CEO of Starbucks. But Starbucks shareholders were largely concerned about an expensive distraction while the coffee chain is in the middle of its own turnaround.

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