Investment Summary

Frontenac and McDonald s Invest In Chipotle

On January 1, 1998, private equity firm Frontenac and McDonald s invested in restaurant Chipotle

Investment Highlights
  • This is Frontenac’s 2nd and McDonald s’ 1st transaction in the Restaurants sector.
  • This is Frontenac’s 21st and McDonald s’ 1st transaction in the United States.
  • This is Frontenac’s 2nd and McDonald s’ 1st transaction in California.
Investment Fate
  • Chipotle went public in 2006.

Investment Summary

Date 1998-01-01
Target Chipotle
Sector Restaurants
Investor(s) Frontenac
McDonald s
Deal Type Growth Capital

Target

Chipotle

Newport Beach, California, United States
Chipotle's corporate headquarters in downtown Denver, Colorado.
Chipotle's corporate headquarters in downtown Denver, Colorado.
Chipotle is a chain of fast-casual restaurants. Chipotle focuses on Mexican cuisine with fresh ingredients. Chipotle was incorporated in 1993 and is based in Newport Beach, California.

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Investor(S) 2

Investor

Frontenac

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1971
PE ASSETS 2.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Frontenac is a Midwest US-based private equity firm that seek profitable, lower middle-market company investments with $5 to $25 million of EBITDA. Frontenac typically partners with management when pursuing acquisitions, including companies managed by owner-operators. Sectors of interest include financial services, healthcare services, education/HR services, manufacturing, publishing/media, and technology services. Frontenac was formed in 1971 and is based in Chicago, Illinois.


DEAL STATS #
Overall 23 of 81
Sector: Restaurants M&A 2 of 2
Type: Growth Capital M&A Deals 2 of 3
State: California M&A 2 of 12
Country: United States M&A 21 of 77
Year: 1998 M&A 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-01-01 ProMach

Covington, Kentucky, United States

ProMach is a provider of complete packaging machinery solutions, engineering and integration services, and related aftermarket products and services. ProMach brands operate across the entire packaging spectrum: filling and capping, flexibles, pharma, product handling, labeling and coding, and end of line. ProMach also provides Performance Services including integrated solutions, design/build, engineering services, and productivity software to optimize packaging line design and deliver maximum uptime. ProMach was founded in 1998 and is based in Covington, Kentucky.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1998-02-24 Mastering

United States

In 1996, Mastering Computers, a leading information technology (IT) training company with nationwide operations, was acquired by Eagle River Interactive, a public company founded and led by Terry Graunke. Mastering Computers leveraged Eagle River's interactive development skills to create a computer-based training library of more than 300 titles. The company also drew on its public parent's financial assets to expand its product line significantly into higher-margin training products and to expand geographically into Europe.

Sell $139M
Investor

McDonald s

Chicago, Illinois, United States

Category Company
Founded 1940
Sector Restaurants
Employees150,000
Revenue 25.9B USD (2024)
DESCRIPTION
McDonald's corporate headquarters in Oak Brook, Illinois.
McDonald's corporate headquarters in Oak Brook, Illinois.

McDonald's is a chain of hamburger fast food restaurants. McDonald's was formed in 1940 and is based in Chicago, Illinois.


DEAL STATS #
Overall 1 of 6
Sector: Restaurants M&A 1 of 3
Type: Growth Capital M&A Deals 1 of 1
State: California M&A 1 of 2
Country: United States M&A 1 of 5
Year: 1998 M&A 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1999-05-06 Donatos Pizza

Columbus, Ohio, United States

Donatos Pizza Inc. is a chain of 140+ pizza restaurants. The Company is based in Columbus, Ohio.

Buy -