News

Donatos Pizzeria, other Partner Brands, under 'strategic review' at McD's

May 22, 2003

Summarize withChatGPTGrokPerplexityClaude

OAKBROOK, Ill. -- McDonald's CEO Jim Cantalupo continues to downplay speculation that the burger giant will sell its Partner Brands.

According to multiple news reports, during a press conference following the company's 2003 annual meeting on May 22, Cantalupo said the company has retained Morgan Stanley to help it conduct a strategic review regarding the future viability of Donatos Pizzeria, Chipotle Mexican Grill and Boston Market. However, when asked directly about sale rumors, Cantalupo told The Wall Street Journal, "There are no 'For Sale' signs for our Partner Brands. ... (W)e're looking at all strategic possibilities, and we have Morgan Stanley helping us."

The non-burger chains were acquired by Cantalupo's predecessor, former CEO Jack Greenberg, who retired last year. At the time, the purchases were seen as a means of developing new profit centers and broadening McD's franchising options.

Stock analysts have speculated for months McDonald's will sell off the currently unprofitable Partner Brands (See related stories Morgan Stanley to sell Donatos Pizzeria and other McDonald's Partner Brands, The sale of Donatos Pizzeria: rumor or reasonable speculation? and Despite rumors, Donatos Pizzeria isn't for sale, says official) which account for only 2 percent of the chain's overall sales. Selling the chains, analysts say, will allow McDonald's to focus on returning its core brand to profitability.