Fast-food major McDonald''s Corp, the world''s largest fast-food firm. has sold
its Boston Market fast-food chain to distressed investor Sun Capital Partners
Inc at an undisclosed price, in yet another show of private equity getting into
franchise business as well.
deal is expected to fetch Oak Brook, Ill.-based McDonald''s not more than $173
million it paid in 2000, even though the fast-food behemoth said it will not book
a loss on the deal.
said it is selling Boston Market, a chain of 630 restaurants serving roast chicken
and meat loaf, to concentrate on expanding sales globally. McDonald''s last year
spun off Chipotle Mexican Grill Inc.
Market, which has annual sales of about $600 million, has generated less than
$5 million in operating profit this year, analysts said. The Golden, Colo., chain
had $180 million in assets and $89.1 million in liabilities through June 30.
Market''s results will be recorded as discontinued operations starting this quarter,
McDonald''s said in a regulatory filing.
acquired Boston Market''s operations for $176.2 million, in May 2000. Two years
earlier, Boston Market had run out of cash to pay creditors and filed for Chapter
11 bankruptcy protection.
the last seven years, McDonald''s converted Boston Market restaurants in choice
locations to McDonald''s. It also closed one-third of the Boston Market stores.
transaction is expected to close in the third quarter, McDonald said in the regulatory
operates 32,000 restaurants in 118 countries.