Starbucks has looked at buying Chipotle, a move that reads as desperation and would likely be bad for Starbucks shareholders but good for Chipotle's.

• Chipotle's stock has lost about 60% of its value since the 2024 peak, falling from a nearly $100 billion company to around $42 billion.
• Starbucks does not have the cash to pay for it — its bills over the next year exceed the money it has coming in, so any deal means new debt and new shares.
• Starbucks is reaching for a new growth story after its China push failed; it is now handing those stores to a joint venture it calls, in its own filing, the "disposal group."
• Buying Chipotle shareholders out would take a large premium, which puts a floor under Chipotle's stock even if the deal never happens.
• Restaurant chains that bolt on new menus and new lines of business tend to stumble, and training burrito workers to make lattes is not a plan.

Outlook: The deal looks unlikely to close, but Chipotle's stock should hold up while the talk lasts and Starbucks carries the risk.