McDonald's Testing Franchising of Other Concepts

McDonald's Corp., the world's largest fast-food chain, is exploring ways to Franchise its non-hamburger brands, which include Chipotle Mexican Grill and Donatos Pizza.

McDonald's bought Columbus, Ohio-based Donatos Pizza in May 1999 and purchased a minority stake in Denver, Colorado-based Chipotle in April 1998 as a way of expanding without cannibalizing its core hamburger business.

McDonald's also bought the bankrupt Boston Market Restaurant chain in 1999 for about $173.5 million. A U.S. Bankruptcy court approved a reorganization plan for Boston Chicken Inc. letting McDonald's complete the acquisition of about 851 Boston Market restaurants.

In the next six to 12 months, McDonald's plans to close unprofitable Boston Market restaurants and convert some to McDonald's, Chipotle or Donatos restaurants. Most outlets will remain Boston Market restaurants.