Tuesday, May 02, 2006

Mcdonald's and Chipotle

McDonald's recently announced that they would sell off their stake in Chipotle, the gourmet Mexican cuisine restaurant. In an order to focus more on the McDonald's Brand, as they put it.

Considering the popularity of Chipotle and the fact that it targets a different consumer market than McDonald's, I'm not sure if I agree with the short-term solution of selling away their profitable share of Chipotle to focus on more on McDonald's. They could simply emulate the Procter and Gamble model of housing several brands(restaurants) under one roof so to speak and let them compete in the market place and take the profits from both.

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