Does McDonald’s Own Chipotle Mexican Grill?
Chipotle Mexican Grill is a popular fast-casual restaurant specializing in fresh, Mexican-inspired dishes, including burritos, bowls, tacos, and salads. Known for its commitment to high-quality ingredients and customizable meals, Chipotle has become a go-to spot for people looking for a quick, yet healthier dining option.
This article will explore the past relationship between Chipotle and McDonald’s, including how McDonald’s investment impacted Chipotle’s growth, and explain why McDonald’s ultimately decided to sell its stake in the company. If you’re curious about the history of Chipotle and whether McDonald’s still owns any part of it, keep reading for the full story.
Chipotle & McDonald’s
In the late 1990s, McDonald’s was investing in various restaurant chains, and in 1998, it took an initial stake in Chipotle. So Yes, McDonald’s did own Chipotle at some point and that too for seven years.
At the time, Chipotle was a small, growing brand with only 14 locations. McDonald’s saw potential in Chipotle’s fresh approach to fast food and quickly became a major investor, putting in around $50 million initially. Over the years, McDonald’s continued to invest in Chipotle, contributing a total of approximately $340 million to support the brand’s expansion.
With McDonald’s resources and influence, Chipotle was able to grow from a small chain to over 500 locations within just seven years. At one point, McDonald’s held around 90% ownership of Chipotle, and the investment was instrumental in helping Chipotle scale quickly. However, in 2006, Chipotle went public with an initial public offering (IPO) at $22 per share, which quickly soared in value. McDonald’s eventually sold off its stake in Chipotle, allowing the fast-casual chain to operate independently and grow on its own terms.
Why McDonald’s Sold Chipotle
Despite Chipotle’s success, McDonald’s decided to sell its stake in 2006, a decision influenced by strategic differences between the two brands. While McDonald’s had initially supported Chipotle’s expansion, it also introduced ideas like franchising, drive-thrus, and breakfast service—elements that didn’t align with Chipotle’s original vision. Chipotle’s co-founder, Steve Ells, was committed to preserving Chipotle’s unique brand identity and resisted these changes, favoring a more controlled and quality-focused expansion.
At a shareholder meeting, then-CEO of McDonald’s, Steve Easterbrook, explained that Chipotle and other investments had become a distraction from McDonald’s core brand and operations. McDonald’s wanted to refocus on its own brand, streamlining its business model and enhancing its established operations. Selling its stake in Chipotle allowed McDonald’s to concentrate fully on its own growth while Chipotle continued to flourish independently, eventually becoming one of the largest and most respected fast-casual chains in the U.S.
Conclusion
Today, Chipotle operates independently and has carved out its niche in the fast-casual dining space, with no ownership ties to McDonald’s. The partnership between the two companies played a key role in helping Chipotle grow from a small chain to a nationwide success, but ultimately, their differing business approaches led to McDonald’s divestment. While McDonald’s helped facilitate Chipotle’s initial expansion, Chipotle has maintained its unique brand values and continues to thrive on its own. For those curious about Chipotle’s ownership, the restaurant has been fully independent since 2006 and continues to focus on quality, sustainability, and a customer-first approach.