McDonald’s plans to discontinue its development of non-McDonald’s brands outside the U.S. and sell off Donatos Pizzeria, among a number of initiatives in line with its revitalization plan to drive long-term growth.
Chairman and CEO Jim Cantalupo announced the following decisions yesterday:
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McDonald’s has agreed on the sale of Donatos Pizzeria back to its founder.
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McDonald’s will discontinue its development of non-McDonald’s brands outside the U.S. This decision—affecting Boston Market in Canada and Australia, and Donatos Pizzeria in Germany—reflects management’s desire to remain sharply focused on revitalizing sales and service at McDonald’s 17,000 restaurants outside the U.S.
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McDonald’s will retain its minority investment in Pret A Manger, but McDonald’s Japan will close its Pret units there, as previously announced.
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McDonald’s has entered into a letter of intent to exit its domestic joint venture with Fazoli’s.
Cantalupo said the decisions achieve several objectives, including eliminating distracting and unprofitable operations, reallocating resources to McDonald’s restaurants and providing a more focused growth platform for Chipotle and Boston Market.
In other company news, McDonald’s will introduce a new packaging design in January inspired by its “I’m lovin’ it” global brand campaign.
The packaging features images of people enjoying life’s simple pleasures.
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| McDonald’s new packaging debuts in February |
The U.S., Canada and Latin America will be among the first to implement the new design, phased in on adult bags and cold cups beginning in January. New “I’m lovin’ it” Happy Meal packaging will roll out in March. Conversion of all packaging in the company’s 30,000 restaurants worldwide is expected to be complete by late 2004.
U.K.-based design agency Boxer will develop the initial graphic packaging design.
In separate developments, a holiday trayliner features Oprah’s personal trainer Bob Greene, with “Tips for Leading an Active Lifestyle” and a short lifestyle quiz. And in select local markets, McDonald’s is offering customers additional choice through new menu options: milk jugs, apple juice and Apple Dippers in Happy Meals in three test markets—Altoona, PA, Columbus, OH, and Tulsa, OK. The new products will be tested for a three-month period.
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