Industry News | September 22, 2005

Chipotle to Go Public

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McDonald's Chief Executive Officer Jim Skinner and members of senior management today reaffirmed McDonald's financial growth targets, strategic priorities and commitment to grow sales at existing restaurants as part of the company's revitalization plan during a webcast presentation for investors. McDonald’s also announced that its board of directors approved a significant increase to the dividend for the third consecutive year, nearly tripling the payout since 2002.

“The opportunities for our McDonald's restaurant business are considerable and deserve our full attention. Earlier this year we began evaluating strategic alternatives for Chipotle Mexican Grill. We've determined an initial public offering of a minority interest in this emerging, popular fast- casual brand is most appropriate. We expect to file for an IPO by the end of October, and launch the offering sometime in the first quarter of 2006. This action will optimize Chipotle's potential and create additional value for McDonald's shareholders” says Skinner.

Concerning McDonald's global restaurant operations, McDonald's President and Chief Operating Officer Mike Roberts says, “Our strategy of growing by being better, not just bigger, is working. Our focus on combined solutions surrounding the five critical drivers of customer satisfaction —People, Products, Place, Price and Promotion—and our strong alignment with owner/operators, suppliers and employees are driving our success. This is an advantage that is not easily quantified, but it creates enormous opportunity. As our initiatives move throughout our global System, I am confident that even more consumers will notice and positively respond to the new, more relevant McDonald's experience.”