August 7, 2007
The Chicken Flys the Coop
McDonald's filed its 10-Q yesterday and disclosed that it had agreed to sell Boston Market. The company expects to complete the transaction in the third quarter, 2007. Boston Market is not a material business to McDonald's and the 10-Q did not give any other details of the transaction. But also on Monday a spokesman for Sun Capital Partners, a private equity firm based in Boca Raton, Florida helpfully announced that it was the buyer. According to news reports, Boston Market, originally called Boston Chicken, has 630 restaurants in 28 states. McDonald's acquired it in 2000 for $173.5 million. For those who follow these things, the bankruptcy of Boston Market (then known as Boston Chicken) was a case-study in the perils of restaurant chains as financing companies who drive expansion through quick and shaky finance schemes for their franchisees (see more here).
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