Once again, the McDonald's Corp., the world's largest fast-food company, may be planning to sell its Boston Market chain of so-called fast-casual chicken restaurants. The logic behind the report is the same as usual: McDonald's wants to focus on its hamburger business.
The latest report comes from the Chicago Tribune. Interestingly, the story admits there are no firm plans to actually sell the chain, instead the story is based on management's claim it will eventually sell the unit. However, The Deal has confirmed the report.
McDonald's acquired the Boston Market chain in 1999 for $173 million through a bankruptcy auction. Boston Market was McDonald's first attempt to expand beyond burgers, and became the basis for McDonald's Partners Brand unit.
McDonald's reportedly has tried unsuccessfully before to sell Boston Market in the past. The first try came in 2003 when McDonald's supposedly tried to sell a stake in Partners Brands, which at the time included Boston Market, Chipotle Mexican Grill and Donatos Pizza. The only potential takers at the time were buyout firms, but they balked at McDonald's terms.
Ultimately, the Golden Arches chose to sell off Donatos in 2003. Then, in 2005 McDonald's sought to sell Chipotle through an auction, but withdrew it because of potential tax liabilities. Ultimately, McDonald's spun off Chipotle via an IPO in 2006 leaving Boston Market an orphan.—Matthew Wurtzel
Go to Article from The Chicago Tribune
See Chipotle auction profile from Auction Block
See Donatos sale story from The Deal
See Partners Brands story from The Deal
See Boston Market acquisition story from The Deal
Continue reading below
