McDonald's Announces Oversubscription of the Chipotle Split-Off Exchange Offer Based on Preliminary Results

Oct 06, 2006, 01:00 ET from McDonald's Corporation

    OAK BROOK, Ill., Oct. 6 /PRNewswire-FirstCall/ -- McDonald's
 Corporation today announced that, based on preliminary results, the
 previously announced offer to its shareholders to exchange all or some of
 their shares of McDonald's common stock for shares of class B common stock
 of Chipotle Mexican Grill, Inc. held by McDonald's was oversubscribed. The
 exchange offer expired at 12:00 midnight, New York City time, on October 5,
     Based on a preliminary count by the exchange agent, Computershare Trust
 Company, N.A., 262,679,833 shares of McDonald's common stock were tendered
 for exchange, including 167,389,231 shares that were tendered by notice of
 guaranteed delivery. Because the exchange offer is oversubscribed,
 McDonald's will accept only a portion of the number of shares of McDonald's
 common stock that were properly tendered, on a pro rata basis in proportion
 to the number of shares tendered. McDonald's will accept for exchange
 18,628,187 shares of McDonald's common stock in exchange for the 16,539,967
 shares of Chipotle class B common stock held by McDonald's. Shareholders
 who owned less than 100 shares of McDonald's common stock, or an "odd-lot,"
 who have validly tendered all of their shares will not be subject to
 proration, in accordance with the terms of the exchange offer.
     Based on the preliminary results, if all shares tendered by notice of
 guaranteed delivery are delivered under the terms of the exchange offer,
 the estimated preliminary proration factor applied to tendered shares of
 McDonald's common stock (i.e., the percentage of tendered shares that will
 be accepted) is 7.0%. The estimated preliminary proration factor is subject
 to change. McDonald's expects to announce the final results of the exchange
 offer, including the final proration factor, on or before Thursday, October
 12, 2006.
     Shares of Chipotle class B common stock will be credited to accounts of
 tendering shareholders by the exchange agent promptly after the final
 results of the exchange offer are announced. In addition, checks in lieu of
 a fractional share of Chipotle Class B common stock and shares of
 McDonald's common stock tendered but not accepted for exchange are expected
 to be delivered or mailed promptly after the final results of the exchange
 offer are announced.
     The terms and conditions of the exchange offer are more fully described
 in an exchange offer prospectus previously filed by Chipotle and a Schedule
 TO previously filed by McDonald's with the Securities and Exchange
 Commission. Shareholders who tendered their shares by means of a notice of
 guaranteed delivery before expiration of the offer must deliver the related
 shares to the exchange agent by Wednesday, October 11, 2006.
     Morgan Stanley & Co. Incorporated served as the dealer manager for the
     McDonald's is the leading global foodservice retailer with more than
 30,000 local restaurants in more than 100 countries. Approximately 70% of
 McDonald's restaurants worldwide are owned and operated by independent,
 local men and women.
     Chipotle operates more than 500 fast-casual, fresh Mexican food
 restaurants in 23 states throughout the United States and in the District
 of Columbia.
     Additional Information
     In connection with the disposition by McDonald's of its interest in
 Chipotle via an exchange offer, Chipotle has filed with the Securities and
 Exchange Commission a registration statement that includes an exchange
 offer prospectus. The prospectus contains important information about the
 disposition and related matters, and McDonald's has mailed the prospectus
 to its shareholders. Investors and security holders are urged to read the
 prospectus, and any other relevant documents filed with the SEC. None of
 McDonald's, Chipotle or any of their respective directors or officers or
 any dealer manager appointed with respect to the exchange offer makes any
 recommendation as to whether you should participate in the exchange offer.
 You may obtain a free copy of the prospectus and other related documents
 filed with the SEC by McDonald's and Chipotle at the SEC's web site at , and those documents may also be obtained for free, as
 applicable, from McDonald's at or
 Chipotle at .
     McDonald's has retained Georgeson Shareholder Communications Inc. as
 the information agent for the transaction. To obtain copies of the exchange
 offer prospectus and related documentation, or if you have questions about
 the exchange offer, you may contact the information agent at 1-866-821-2614
 (toll-free in the United States), or 1-212-440-9800 (elsewhere).
     Forward-Looking Statements
     Information in this communication contains forward-looking statements,
 which reflect management's expectations regarding future events and
 operating performance and speak only as of the date thereof. These
 forward-looking statements involve a number of risks and uncertainties.
 Such forward-looking statements include, but are not limited to, statements
 about the benefits of the split-off, including future financial and
 operating results, and each company's plans, objectives, expectations and
 intentions and other statements that are not historical facts. A list of
 the factors that could cause actual results to differ materially from those
 expressed in, or underlying, those forward-looking statements is detailed
 in the filings of McDonald's and Chipotle with the SEC, such as annual and
 quarterly reports and the exchange offer prospectus. McDonald's and
 Chipotle disclaim any obligation to update and revise statements contained
 in these materials based on new information or otherwise.

SOURCE McDonald's Corporation