McDonald’s May Buy Stake in World Foods

McDonald’s Corp. said it agreed in principal to buy a minority interest in World Foods, an operator of 14 Mexican restaurants in Denver, as it explores regional specialty products to boost its U.S. sales. McDonald’s, which didn’t disclose the terms, said it expects closely held World Foods’ Chipotle Mexican Grills to add to its franchising mix and food-service expertise. World Foods founder Steven Ellis and others would be the majority owners, McDonald’s said, with Ellis continuing as president and chief executive. Oak Brook, Ill.-based McDonald’s cut its U.S. expansion to about 15% of new restaurants worldwide this year and last. Sluggish U.S. sales and intense competition have forced it to look to international growth and to new concepts at home. If the Chipotle restaurants exhibit growth potential, McDonald’s would expand it as a franchise, said Patrick Flynn, executive vice president of McDonald’s U.S. division. The world’s largest fast-food service has more than 23,500 restaurants in 109 countries, of which about 11,000 are outside the U.S. McDonald’s shares rose 94 cents to close at $50 on the NYSE.