From Kraft Heinz to McDonald's: Chicago companies driving national headlines
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A sign outside of the Aon Center marks the location for the headquarters of Kraft Heinz. Photo: Scott Olson/Getty Images
Mergers, acquisitions and funding announcements have dominated Chicago's business landscape this summer.
Why it matters: Chicago only trails New York City for the most Fortune 500 companies in the country.
Kraft Heinz breakup, move out
The Chicago-based Kraft Heinz is splitting up, creating two new separate companies.
Why it matters: Kraft Heinz is currently the third-largest food and beverage company in North America, employing thousands of people in the Chicago area.
State of play: The new companies will keep their headquarters in the Loop and in Pittsburgh.
Yes, but: It may not be called Kraft Heinz anymore. The parent corporation says it will announce new names for both divisions soon, but that may not impact what you see in the stores.
The intrigue: With the split, one company will focus on sauces, spreads and seasonings, while the other will sell grocery staples.
- Kraft had already spun off its snack division in 2011, which is now Mondelez International.
The bottom line: The massive merger that once rocked Chicago business lasted only a decade.
McDonald's cuts prices
McDonald's is cutting prices on select combo meals in an effort to attract customers who have been turned off by the rising cost of fast food.
Driving the news: Starting Monday, the fast food giant will offer Extra Value Meals, which include Big Mac and Egg McMuffin sandwiches with fries/hashbrowns and a drink.
Zoom in: McDonald's says the new menu items will cost 15% less than ordering items separately. The first week will kick off with a limited-time offer of an $8 Big Mac deal or a $5 Egg McMuffin meal.
- The move aims to counter customer sentiments that McDonald's is no longer a good value, according to CEO Chris Kempczinski.
Zoom out: The price drop may start a fast food price war, which could bring the costs down for meals at other restaurants.
Claire's files for bankruptcy ... again
For the second time in just seven years, Hoffman Estates-based Claire's has filed for bankruptcy.
Driving the news: The casual teen jewelry chain will close 290 stores, including 16 in Illinois.
- Last month, Claire's announced it had sold to a private equity firm, which says it plans to keep the company running in its downsized form.
Motorola Solutions acquires Silvus
Motorola Solutions, which specializes in government communications and infrastructure, has acquired Los Angeles-based Silvus Technology Holdings.
- Silvus' technology focuses on supporting frontline operations by designing drones, unmanned vehicles and robots.
- The $4.4 billion deal is the biggest acquisition for the Chicago-based company since it split in two — Motorola Solutions and Motorola Mobility, which focuses more on cellphone technologies — in 2011.
Flashback: It wasn't too long ago that Motorola was one of the top technology companies in the country and a huge employer in the Chicago area.
- After the split, Motorola Solutions left its Schaumburg headquarters to move downtown to 500 W. Monroe St., while Mobility moved from Libertyville to the Merchandise Mart.