McDonald's Narrows Focus, Sells Pizza Chain

CHICAGO -- McDonald's is getting rid of its Donatos pizza business as part of an effort to focus more on its core operations.

The fast-food giant will retain Chipotle and Boston Market, which are profitable. It will sell Columbus-based Donatos back to its founder and will also discontinue the development of all partner brands outside the United States.

Donatos founder Jim Grote sold his pizza chain to McDonald's in 1999. Grote was a sophomore at Ohio State University when he opened his first store in 1963.

McDonald's chief executive Jim Cantalupo said the moves are consistent with the company's new priority to "do fewer things better."

"Boston Market and Chipotle have demonstrated the strongest potential to add growth to our bottom line. We will continue to develop these concepts and work to achieve greater profitability," said Mats Lederhausen, managing director of McDonald's Ventures.

McDonald's expects to take charges of 23 cents to 28 cents a share in the fourth quarter to accommodate the steps.

McDonald's has been deliberating for months on what to do with its partner brands. It reportedly tried to sell the brands but was unable to strike favorable deals.