McDonald's and Fazoli's Sign a Letter Of Intent
Fazoli's Is a 400 Fast-Casual Italian Restaurant Concept in 32 States
PRNewswire-FirstCall
OAK BROOK, Ill.
Apr 24, 2002
McDonald's Corporation (NYSE: MCD) and Fazoli's, a fast-casual Italian restaurant concept based in Lexington, Kentucky, have signed a non-binding letter of intent to form a joint venture to develop 20 to 30 Fazoli's restaurants in three U.S. markets. McDonald's will also have an option to purchase the entire company at a later date.
Fazoli's operates about 400 restaurants in 32 states. Their menu focuses primarily on pasta and also offers Italian submarine and panini sandwiches and salads.
"We are excited about the potential of a joint venture with Fazoli's. Pasta is a large and growing segment of the eating-out market not represented in our current portfolio of Partner Brands. Fazoli's is a strong brand with a loyal customer base. We believe this dynamic concept can be successful throughout the U.S.," said Russ Smyth, President of Partner Brands, McDonald's Corporation.
McDonald's interest in Fazoli's is consistent with the company's strategy to capture more meal occasions under both the Golden Arches and the company's Partner Brands. The intent is to give consumers what they want: a variety of tastes and dining experiences.
Currently, McDonald's owns and operates more than 650 Boston Market locations in the U.S. and one in Sydney, Australia, and nearly 200 Donatos Pizzeria restaurants in the U.S. The company has a majority interest in Chipotle with nearly 200 U.S. restaurants, and a minority interest in Pret A Manger, ready-to-eat sandwich shops with more than 115 locations in the United Kingdom, eight shops in New York City and two in Hong Kong.
Fazoli's Chairman Kuni Toyoda said, "Our mission is to become America's favorite Italian family restaurant company. We want every guest to enjoy the Fazoli's experience, free unlimited breadsticks included. McDonald's shares our values and has a proven track record of growing its core business and developing new markets. This joint venture will enable Fazoli's to benefit from McDonald's competencies in site development, supply chain and other business systems. This opportunity will enable us to move closer to our vision."
Fazoli's Italian Restaurants bring together two of America's most popular dining concepts -- the family Italian restaurant and a fast-casual atmosphere. With reasonable prices, quality food and quick service, Fazoli's provides a great experience for everyone. Fazoli's menu includes Italian favorites like spaghetti and meatballs, fettuccine Alfredo, lasagna and ravioli, along with Fazoli's signature Submarinos® and panini sandwiches, salads and free breadsticks ... everyone's Italian™.
McDonald's is the world's leading foodservice retailer with more than 30,000 restaurants in 121 countries, serving 46 million customers a day.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements with respect to McDonald's and Fazoli's. They use such words as "may," "will," "expect," "believe," "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this release. These forward-looking statements involve a number of risks and uncertainties.
The following are some of the factors that could cause actual results to differ materially from those expressed in or underlying McDonald's forward- looking statements: the effectiveness of operating initiatives and advertising and promotional efforts, as well as changes in: global and local business and economic conditions; currency exchange and interest rates; food, labor and other operating costs; political or economic instability in local markets; competition; consumer preferences, spending patterns and demographic trends; legislation and governmental regulation; and accounting policies and practices. The foregoing list of important factors is not exclusive.
All forward-looking statements relating to the signed letter of intent between McDonald's Corporation and Fazoli's are subject to, among other things, the approval of final definitive agreements by the board of directors of each company.
McDonald's undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE: McDonald's Corporation
Contact: Investors, Mary Healy, +1-630-623-6429, or Media, Anna
Rozenich, +1-630-623-7316, both of McDonald's Corporation, or Media, Becky
Fine of Fazoli's, +1-859-825-6349
Website: http://www.mcdonalds.com/