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Top StoriesMarketWatch3h ago

Feel like a pumpkin-spice burrito? Analysts try to wrap their heads around a possible Starbucks-Chipotle tie-up.

Starbucks investors would likely not be happy about the company adding debt to finance a deal to buy Chipotle, given that it already has a high debt load.

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AI SUMMARY

# Investment Summary A potential Starbucks acquisition of Chipotle would likely face investor pushback due to Starbucks' already elevated debt levels, as the company would need to take on additional leverage to finance the deal. Starbucks shareholders appear hesitant about the financial risk of expanding into Chipotle's business through debt-funded M&A activity.

Content sourced from MarketWatch. Not financial advice.