Starbucks on Thursday declined to comment on reports that it had considered acquiring Mexican-style restaurant operator Chipotle Mexican Grill, and said the company is "fully focused" on its turnaround efforts under CEO Brian Niccol.

Earlier reports, citing sources, said Starbucks had been working with advisors in recent months to explore a potential acquisition of Chipotle. Before becoming Starbucks' chief executive in 2024, Niccol led Chipotle for about six years.

In response to the report, a Starbucks spokesperson said the company does not comment on rumors and speculation, adding that Starbucks remains focused on its two-year turnaround plan under Niccol and is confident in its long-term growth potential, with strong momentum.

Following the acquisition rumors, Starbucks, with a market value of about $107 billion, narrowed its losses by Thursday's close and ended nearly flat compared with the previous trading session. Meanwhile, Chipotle shares jumped 6%, bringing its market value to about $41 billion.

Niccol has been widely praised for leading Chipotle out of the shadow of a food safety crisis and expanding its digital business, moves that drove years of strong sales growth.

RBC Capital Markets analyst Logan Reich said: "For Chipotle, this news will be seen as a positive, mainly thanks to Niccol's return to the brand."

However, Reich noted that investors have long been skeptical of restaurant companies pursuing growth through acquisitions of other brands, adding that the strategic rationale for a Starbucks acquisition of Chipotle is not yet clear.

Analysts pointed out that given Starbucks is investing heavily in its business transformation, making an acquisition could prove costly. eToro global market strategist Lale Akoner said: "Getting a deal done could require significant debt or stock issuance. Without a compelling financial rationale, investors may view this as a costly and distracting move."