Honestly, I don't remember. I seem to recall a right to purchase a share for every 10 shares of MCD owned or something. I just don't remember. I can't even remember if I was still in MCD at the time. I never did get the Chipotle shares. I either rdidn't participate or was out.
I got in when Jim Cateloupe was in charge. Then he died of cancer. Then the Austraian franchisee super star, and I can't remember his name, became CEO. A guy that worked his way from mopping floors, to store manager, to franchisee owner, to McCafee designer, to corporate exec, all the way to CEO. Just an amazing story. He died of cancer too. It was sad. Both were awesome, then the third CEO came from one of their countries. They have deep pockets of talent and promote from within the culture. It was the third one where I exited at some point. It was a great return and the turnaround was already in full swing by that time. I remember debating with Vegans and pessimists and everybody was down on MCD. I believe I averaged down from $19.00 all the way to $11.00 if memory serves correct. It was out at $60 or $50. I just don't remember, but it's over $100 I think.
I was in DDRX at the time, and they were cursed with cancer too. The best turnaround guy Michael Jenkins stepped up to save them. He died of stomach cancer at the same time MCDs CEOs were cursed with cancer. That really set DDRX back and deals fell through. It was just one curse after another at DDRX, but it all worked out with turnaround exec Coffey who turned around Edward Cinemas and a host of others. A fitting name for a CEO to lead a cursed coffee company.
That was one of the most interesting and fun turnaround stories. Then it got boring when they got all focused and everything great. Let's see, that famous singer what's his name started doing commercials. They changed the slogan to "Livin It" or something. I don't remember. Even Buffett didn't believe in the turnaround and didn't invest, though he had a long history with MCD. He didn't discount it, just wasn't sure about it. I, however, had a great feeling about it.
I was in MCD when they were experiencing negative WSS, they had Boston Market, Donatos Pizza, and Chipotle at the time. In fact, Jenkins came from Boston Market and Jenkins was my boss and S&A back in the day. After MCD was all focused again, McCafe was being expanded internationally, sales were up, and the stock was soaring, I was out. And I just can't remember why I didn't end up with Chipotle. It was a story of over-expansion and the realization that MCD was now a cash cow. But growth could be achieved by being a really good cash cow.
Chipotle was doing fantastic, but it was such a small part of the pie within a company that had over 33,000 units all over the world. So the spinoff made sense. Donatos and Boston Market were negative drag but but were not making a dent one way or another, just as Chipotle wasn't making a dent. They all, however, were a distraction and all jettisoned as part of a re-focusing effort amongst other things.
The End...
