Spinoffs are a tax-advantageous form of corporate divestiture that typically result in the creation of additional value for shareholders of both the parent and spun off subsidiary. McDonald’s spinoff of Chipotle is an example of a spinoff that, by many accounts, was hugely successful for Chipotle, but only marginally so for McDonald’s. Chipotle has seen tremendous sales and share price growth since the spinoff, whereas McDonald’s has experienced only moderate, yet still positive growth over the same period. Despite its relatively meager growth, McDonald’s has shown other signs of financial strength in its high return on equity and profit margin. Although McDonald’s may have missed out on additional marginal growth by spinning off Chipotle, the total additional value created for shareholders was most likely greater than the loss.