Is Boston Market’s Chicken Cooked?

Dec 09, 2003

By George Anderson

Is Boston Market’s chicken cooked? Will McDonald’s cut off dough to Donato’s Pizzeria? Does it make sense for the hamburger chain to say “adios” to its Chipotle Mexican Grill

These and other questions are on the minds of many within the McDonald’s organization after the company’s chairman and chief executive officer, Jim Cantalupo, said it was close
to making a decision on what it would do with its non-hamburger restaurants.

“In the coming weeks, we will finalize decisions related to our Partner Brands and provide an estimate of the charges related to these and other revitalization actions, as well
as annual asset impairment testing. These decisions are additional building blocks in McDonald’s revitalization plan, and demonstrate our ongoing commitment to improve financial
performance through a more focused approach to running our business.”

“While we still have work to do, our momentum continues as we maintain focus and discipline on what counts most – our customers and restaurants,” he added.

Moderator’s Comment: What do you think McDonald’s should do with its partner brands?

Mr. Cantalupo’s statement seems to indicate the company plans on moving ahead without some or all of its non-burger properties. Recent financial numbers
from the company certainly support him in that position as the burger chain business grows stronger.

Keeping the other businesses would make sense if they added value to the core business. In our experience, however, it’s hard to tell visiting any of the
McDonald’s restaurants (burger and non-burger) where learning from one business has been passed on to another.
Anderson – Moderator

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