Fortune smiles

Los Angeles, Jan. 29 (Reuters): McDonald?s Corp. has said that its quarterly earnings more than tripled as its US business improved further and signalled it might pursue a spinoff or other options for its Chipotle Mexican-style chain.

Net income rose to $397.9 million, or 31 cents per share, from $125.7 million, or 10 cents per share, a year ago.

Excluding a one-time gain from the sale of a real estate partnership and charges for asset impairment and a change in the way it accounts for leases, McDonald?s earned 45 cents per share, below Wall Street analysts? average estimate of 46 cents per share, according to Reuters Estimates.

Chipotle, one of several small chains McDonald?s operates, has benefited from growing US consumer demand for quick, fresh food known as fast casual.

Notwithstanding that success, however, McDonald?s in recent years has downplayed its so-called partner brands as part of a back-to-basics strategy implemented by former chief executive Jim Cantalupo, who died suddenly last year.

The company two years ago sold its Donato?s pizza unit but held on to other chains like Boston Market and Pret A Manger. Asked about its plans for Boston Market, McDonald?s said the 630-store operation did not require much capital and was poised for growth thanks to opportunities like selling its own brand of prepared foods in East Coast supermarkets.

?The brand has a lot of legs,? McDonald's chief financial officer Matthew Paull told analysts on a conference call to discuss the company's quarterly results. ?We have no plans to do anything with Boston Market other than grow it.?

CEO Jim Skinner said raising capital for the 400-store Chipotle chain, which is expanding more quickly than its other non-hamburger brands, would allow the company to focus more resources on its namesake restaurants.

Legg Mason Wood Walker analyst Glenn Guard, who has a ?hold? rating on McDonald?s shares and owns none, said he expects the company to spin off Chipotle to the public.

?That?s probably the most likely,? Guard said. ?It?s a great concept and as far as I can tell it could function as its own publicly traded company.?