McDonald's Once Owned 90% Of Chipotle: Why It Sold Stake Too Early, Missed $73 Billion Opportunity
Portfolio Pulse from Chris Katje
McDonald's once owned a 90% stake in Chipotle, which it sold by 2006. This decision cost McDonald's a potential $73.8 billion, as Chipotle's market cap has since soared to $82 billion. The sale was driven by strategic focus on McDonald's core brand.
October 23, 2024 | 3:11 pm
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POSITIVE IMPACT
Chipotle's market cap has grown to $82 billion since McDonald's sold its stake in 2006. The company's focus on quality and service, along with strategic drive-thru additions, has fueled its growth.
Chipotle's growth to a market cap of $82 billion highlights its successful strategy post-McDonald's ownership. The company's focus on quality and strategic additions like drive-thrus have contributed to its strong market position, likely boosting its stock price.
CONFIDENCE 100
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
McDonald's decision to sell its 90% stake in Chipotle by 2006 cost it a potential $73.8 billion. The sale was part of a strategy to focus on its core brand, but it missed out on Chipotle's massive growth.
McDonald's sale of its Chipotle stake was a strategic decision to focus on its core brand. While it missed out on significant gains, the decision aligns with its long-term strategy. The impact on McDonald's stock is neutral as the sale was long ago and the company remains strong.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 90