Starbucks confirms it is not buying Chipotle

Starbucks ( SBUX ) does not plan to acquire Chipotle ( CMG ), the company confirmed on Monday, quashing the vision of a breakfast burrito paired with a cortado.

"As a matter of policy, we don't comment on rumors and speculation, but we want to be clear we are not buying Chipotle," a spokesperson told Yahoo Finance.

The company added in a statement that it is "laser focused on executing our Back to Starbucks strategy" and generating momentum ahead of its next quarterly results on Oct. 29 after the closing bell.

Starbucks' statement follows a Financial Times report last Thursday that the coffee giant explored a takeover of the burrito chain .

The rumor mill leaned into the story given Starbucks CEO Brian Niccol's close ties with the burrito chain. Niccol was Chipotle's CEO for six years and spent time at food conglomerate Yum! Brands ( YUM ) prior to that.

Since Niccol announced his departure from Chipotle, the stock has fallen more than 25%. In its latest quarter, same-store sales increased 2.2%, but food safety concerns hit the tail end of the quarter amid a potential Salmonella outbreak in Chipotle's supply chain.

If Starbucks had proceeded with the takeover, it would still be the largest restaurant acquisition in history. Some analysts tried to wrap their heads around how the two could mutually benefit each other .

"There are no obvious revenue synergies between the two brands, although perhaps opportunities exist in shared loyalty ecosystems, cross-brand product placements (i.e., Starbucks Refreshers with your Barbacoa Burrito Bowl), or expanding Chipotle's licensed international business more quickly through Starbucks' existing relationships," William Blair analyst Sharon Zackfia wrote to clients.

TD Cowen's Andrew Charles called it "a low-probability" event from the start.

"Our initial reaction is skepticism," he wrote in a note. "While there is plausibility given CEO Brian Niccol's history at Chipotle, a transaction of this size would likely distract from Starbucks' ongoing turnaround. This is on top of the cost and integration risk."

Last month, Starbucks shared plans to close 250 stores in the US and Canada, reducing its store count by roughly 1%. The news followed a strong third quarter, indicating that Niccol's turnaround plan was making progress.

Starbucks posted same-store sales growth of 7.9%, more than the 5.7% growth Wall Street expected, according to Bloomberg data, and above the 6.2% jump seen in Q2. Last year, the company saw a 2% decline in overall same-store sales growth in the third quarter.

Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @ BrookeDiPalma or email her at bdipalma@yahoofinance.com.