Though the restaurant is famed for its quick burgers and all-American menu, it might surprise you to learn that McDonald’s played a pivotal role in the story of fast-casual food titan Chipotle. McDonald’s involvement in the Mexican-inspired chain began in the late 1990s, when Chipotle was virtually unknown and McDonald’s was an American institution. As it often goes in business, a connection helped get Chipotle on McDonald’s radar. A friend of one of Chipotle’s investors joined the McDonald’s team and helped them score a meeting, where they brought samples of their food to pitch.
From that fateful meeting until McDonald’s cut ties with the Mexican chain in 2006, the fast food giant played an early but pivotal role in Chipotle. Its support and financial investments — to the tune of $340 million total — certainly were instrumental for the fast-casual Mexican eatery, which grew from just a few stores to more than 500 by 2005 — and over 3,500 by 2025.
McDonald’s and Chipotle’s crossover was short-lived but crucial
Thanks largely to the early support of McDonald’s, Chipotle continued to grow into the giant it is today. Still, despite McDonald’s crucial early involvement, there were really no telltale sign or clues they were involved — so even eagle-eyed foodies likely didn’t know about the crossover. The two menus couldn’t be more different, and the vibes and aesthetics of the two chains don’t share many similarities. Perhaps these fundamental differences are part of the reason the two split ties in 2006, when McDonald’s sold off all its shares — which once totaled about 90% of the company.
Investing in many other chains over the years aside from just Chipotle, McDonald’s executives began to feel the company’s attention was being stretched too thin. According to Benzinga, McDonald’s executives were also pressuring Chipotle leaders to introduce drive-thrus and breakfast in its locations, which also led to some differences in opinion. By late 2006, the two were completely separated, which perhaps was one of the biggest mistakes McDonald’s ever made, as Chipotle’s value only soared in the coming years — clocking in at a whopping $1.85 billion by the time the two completely broke up.
While Chipotle insisted on marching to the beat of its own drum and has continued its meteoric rise after its divorce from the Golden Arches, who’s to say how different food history could have been if McDonald’s maintained a grip on Chipotle. McDonald’s, certainly, could have padded out its bottom line more if it held onto those valuable shares longer. Chipotle largely reclaimed its original vision, even bucking the franchise model McDonald’s had pushed. Clearly, the separation didn’t hurt either company, and the two restaurant chains are thriving today all on their own.
