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000385 McDonald's Eyes Non-Burger Eateries

March 31, 2000

Oak Brook, IL - McDonald's Corp., is planning to increase the number of its non-hamburger restaurants this year, a spokeswoman for the world's largest fast- food chain said.

McDonald's will open 160 to 180 new restaurants under its Chipotle Mexican Grill, Donatos Pizza and London-based Aroma Cafe brands, spokeswoman Anna Rozenich said.

There are 60 Chipotle, 147 Donatos and 30 Aromas currently operating. Rozenich could not say how many restaurants will be added to each chain.

McDonald's also plans to add between 1,800 to 1,900 hamburger restaurants this year, with 90% of the expansion taking place outside the United States, Rozenich said. The Oak Brook-based chain added 1,790 restaurants last year, bring its total to 26,800.

The restaurant giant, which had sales of $38.5 billion last year, has been receiving stiff competition from other fast-food chains like Wendy's and Burger King. McDonald's became an investor in the Chipotle chain in 1998 and acquired the Donatos and Aroma Cafe chains last year to ensure continued growth of the company.

Also last year, McDonald's agreed to purchase 751 Boston Market restaurants and the franchise rights for an additional 108 restaurants from bankrupt Boston Chicken Inc. The purchase is expected to close this summer.

Some Boston Market restaurants will be closed or turned into McDonald's, Chipotle or Donatos Pizza outlets, according to Rozenich.

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