Split-offs and the McDonald’s – Chipotle Example
In 2006 McDonald’s (MCD) decided to spin-off its Mexican fast casual chain Chipotle (CMG) in a series of transactions that started with an IPO of Chipotle in January, followed by a secondary offering a few months later and finally through a split-off in October 2006. After the IPO and secondary offering, McDonald’s had retained a 51% economic stake and 82% voting interest in Chipotle. McDonald’s decided to divest this remaining stake through a spilt-off.