Chipotle shares fell 3% to $30.55 in morning trading after Starbucks said it is not pursuing an acquisition of the burrito chain, ending several days of takeover speculation that had lifted the stock. The SPY ETF was flat, so the drop was specific to Chipotle; McDonald's fell 0.8%, Yum! Brands rose 0.2% and Starbucks gained 1%. Chipotle owns and operates its restaurants, so its earnings depend on traffic, and visits to its restaurants have fallen; its Q3 2026 results are expected on October 28. The stock sits near its 52-week low of $28.04, against a high of $42.82.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Chipotle Slides 3% as Starbucks Rules Out Acquisition; Starbucks Stock Rises While McDonald’s Stock Slips
Read the original on Yahoo Finance ↗
Related news
- SoundHound AI Slides 5% to Fresh Lows While C3.ai Climbs 4% on Northland Upgrade; UiPath Slips
SoundHound AI (SOUN) fell 5% to $5.14 in early trading, hitting fresh lows and down 48% so far this year. C3.ai (AI) climbed 4% to $11.98 after Northland Capital upgraded it to Outperform and raised its price target to $16, citing a new tool that lets customers build agentic applications using natural language. UiPath (PATH) slipped 2% to $13.26, the iShares Expanded Tech-Software ETF (IGV) dipped 0.8%, and the SPDR S&P 500 ETF (SPY) was virtually unchanged. SoundHound completed its stock-funded acquisition of LivePerson in early September, enlarging its share count while it still reports losses. It held $202.8 million in cash at the end of Q2 2026, and its revenue rose 45% year over year in Q2 2026.
- Starbucks (SBUX) vs McDonald's (MCD) and Yum Brands (YUM): Which Restaurant Stock is a Better Buy?
The article compares Starbucks (SBUX), McDonald's (MCD) and Yum! Brands (YUM) over the past six months. SBUX closed at $90.75 (down 6.9%), MCD at $235.23 (down 22.8%) and YUM at $144.82 (down 10.3%), and none beat the two benchmarks. All three report negative book value, which the article attributes to years of buybacks and dividends funded with borrowing, while franchising explains much of the gap in returns. Yum Brands posted a 22.69% return on assets and 12.20% revenue growth, McDonald's had a 46.49% operating margin versus 12.92% at Starbucks, and Starbucks' revenue fell 1.40% with a payout above 140% of earnings. Starbucks trades at 29.04 times forward earnings, the highest of the three, and the author views McDonald's as the most defensible on the numbers.
- Cramer: Starbucks tells me Chipotle takeover won't happen and that's good for the stock
In Monday's Morning Meeting livestream from the CNBC Investing Club, Jim Cramer said Starbucks is not pursuing an acquisition of Chipotle and remains focused on its turnaround under CEO Brian Niccol. Starbucks shares came under pressure last week after reports that the company had explored a potential deal. Cramer pointed to encouraging data from HundredX showing that consumers' future purchase intent for Starbucks continues to improve while other quick-service chains face weakening demand, and he called it a big mistake for investors to shun Starbucks and other consumer stocks solely over concerns about higher interest rates. Separately, Micron fell 3% as investors rotated from semiconductors into software, and Cramer cautioned against buying more chip stocks until they show signs of bottoming.
- Top Midday Stories: Starbucks Says It's Not Buying Chipotle; IonQ Buying Elisity for Up to $1.3 Billion
- Starbucks says it is not buying Chipotle after takeover speculation
Starbucks said Monday it is not considering acquiring Chipotle Mexican Grill, which would have been the biggest restaurant takeover ever. A spokesperson told CNBC’s Jim Cramer, “Starbucks is not buying Chipotle,” after the Financial Times reported Thursday that Starbucks had worked with advisors on a takeover proposal in recent months. Chipotle shares fell nearly 4% in morning trading while Starbucks rose 1%. Semafor had earlier reported that Chipotle hired advisors to defend against activist investors or an unwanted bid, and Chipotle shares are down about 20% over the past year. Chipotle investors had hoped for a reunion with Brian Niccol, who previously led Chipotle and now runs Starbucks, while Starbucks shareholders worried about a distraction during the coffee chain’s turnaround.
- Nebius Slides 3% Despite Rosenblatt's New Buy Rating; CoreWeave Slips
Nebius (NBIS) shares fell 3% to $214.99 even though Rosenblatt Securities initiated coverage with a Buy rating last Friday, ranking Nebius near the top of the neocloud group alongside CoreWeave. The stock is down 11% over the past week, while CoreWeave (CRWV) slipped 1% to $80.91. The article links the broader selloff to a disputed report on OpenAI's revenue run-rate, and says Nebius has issued no new announcement explaining the latest decline. Bullish points include a $37.5 billion backlog, Q2 2026 revenue of $582.3 million and FY2026 revenue guidance of $3 billion to $3.4 billion, but the stock trades below its 50-day moving average of $224.42. CoreWeave's $104 billion backlog comes with negative free cash flow of $5.74 billion.
Related markets
Latest news
- CoreWeave Dropped 20% Last Week. Is It Time to Panic or Buy?
CoreWeave shares fell more than 20% as of Oct. 16, driven mainly by concerns over debt and spending. The company carries about $35 billion in total debt against $5.5 billion in cash, with net interest payments reaching $640 million in the second quarter alone, unsecured bond yields approaching 15%, and an S&P rating of B+. Capital expenditure was just over $16 billion in the first half of 2026 and could reach $39 billion for the year, roughly triple its $12.4 to $13.2 billion revenue guidance. States are also weighing restrictions on data centers. On the positive side, second-quarter revenue rose 112% year over year and the backlog exceeded $104 billion. The author has reservations and sees the drop as an opportunity only for the most risk-tolerant investors, who might build a position slowly, while the company needs to prove it can convert its backlog efficiently and manage debt.
- Apple’s iPhone Duo Sold Out In Minutes. The Last Time Apple Reinvented The Phone, One Apple Supplier’s Stock Soared About 1,200% In A Decade
Apple's first foldable iPhone, the iPhone Duo, sold out within minutes of its worldwide preorders opening on Oct. 16, but buyers who ordered more than an hour later face a delay of nearly three months, according to Korea JoongAng Daily, which puts the U.S. starting price at $1,999. One unnamed supply-chain source said Foxconn's final-assembly yield was just above 60% heading into late September, against the 90%-plus rate Apple typically expects, and the hinge, which holds more than 100 parts, is cited as a constraint. Analyst Jeff Pu cut his 2026 shipment estimate from 7 million to 6 million, while reported forecasts range from about 6 million to 10 million units. The article also recalls that Skyworks Solutions, identified as the power-amplifier supplier of the original iPhone, rose about 1,200% over a decade, though those figures cover price only.
- Why Sandisk Stock Shot Higher Today
Sandisk shares jumped as much as 8.3% and were still up 7.9% at 11:24 a.m. ET, helped by a tech rebound and positive news in high-bandwidth memory (HBM). Nvidia has developed NVHBM, a custom HBM die with 15% lower power consumption and 30% higher bandwidth that links NVLink and HBM chips. A Seoul Economic Daily report says Nvidia asked Samsung Electronics to use TSMC's 3-nanometer process to make NVHBM dies, the first such collaboration between the two. Nvidia has also approached Micron and SK Hynix to standardize the process, which could free compute-die space for up to 30% additional compute. The article argues this suggests AI adoption still has room to grow, which would also benefit memory suppliers, and notes Sandisk trades at 19 times earnings and 6 times forward earnings.
- JPMorgan Picks Ethereum for JPM Coin, Citing the Network’s Liquidity and Client Use
JPMorgan is launching JPM Coin, its dollar deposit token, on Ethereum and will offer it to institutional clients there, as announced Monday and reported by Bloomberg. Emma Landriault, global head of Kinexys Labs, said Ethereum's liquidity and the fact that the bank's clients already use it drove the choice. The token targets large crypto firms that pay onchain and financial institutions active in tokenized assets, which can use it as onchain cash to settle trades or as collateral. JPM Coin debuted last year on Base, and it lets clients move dollars in seconds at any hour, whereas a transfer can otherwise take several days. JPMorgan's private Kinexys network already handles daily volume above $7 billion, the bank's payments arm handles around $12 trillion in daily payments, and Open Standard launched its OUSD stablecoin on Ethereum, Solana, Base and Tempo last month.
- Prediction : Amazon Next Chapter Could Be Its Most Important One Yet
24/7 Wall St. sets a price target of $332.67 for Amazon (AMZN), 30.4% above the current $255.20, and rates the stock a buy with 70% confidence. The thesis rests on AWS, which grew 37% last quarter, its fastest pace in 18 quarters, while Amazon plans to spend about $200B in 2026 on AI infrastructure, chips, robotics and satellites. The article flags risks: trailing free cash flow turned negative at about -$7.6B after second-quarter capex rose 68.44%, and long-term debt climbed to $119.1B from $65.6B. It compares Amazon's valuation with Microsoft and Alphabet, and says the author would stay constructive if AWS growth stays above 30% and free cash flow turns positive in 2027.
- Explainer - What behind Egypt move towards possible military involvement in Saudi - Yemen conflict ?
Egypt's parliament is expected to vote next week on authorising its armed forces to help defend Saudi Arabia against Houthi attacks from Yemen, if Riyadh requests support. President Abdel Fattah al-Sisi made the request in a Saturday speech, a clear escalation from Cairo's measured tone since the Iran war began, though Egypt has not publicly committed to a direct combat role. Egypt relies heavily on Gulf states for remittances, aid and deposits, including a $5.3 billion Saudi deposit at Egypt's central bank due this month. Analysts say security concerns, including a July drone strike on two gas vessels at Damietta and shared interest in Red Sea shipping, are pushing Cairo toward a more active stance. Egypt receives about $1.3 billion a year in US military aid and previously sent air and naval forces to the Saudi-led coalition in Yemen in 2015.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.