Icahn's pork fight at McDonald's is in bad taste
22/02/2022 18:22
(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
NEW YORK, Feb 22 (Reuters Breakingviews) - Carl Icahn
thinks suppliers of pork to McDonald’s MCD.N are treating
their pigs badly, and the 86-year-old investor wants two board
seats urn:newsml:reuters.com:*:nL1N2UV0FY to push for more humane treatment. The $190
billion fast-food chain may deserve an activist. But Icahn is
reading the wrong menu.
The first problem is that the billionaire owns just 200
shares, worth maybe $50,000, according to McDonald’s on Sunday.
Such a piddling stake hardly earns a hearing.
Second, even if Icahn feels the "affection" for swine
reported by the Wall Street Journal, incorporating that into his
investing is an improbable shift given his hard-nosed history.
Icahn Enterprises IEP.O also owns 89% of Viskase Companies
VKSC.PK , a maker of casings for products like hot dogs.
McDonald's suggests Viskase's pig welfare commitments fall short
of its own.
Third, Icahn has more familiar fodder to focus on. Though
other fast-food outlets have done worse, McDonald’s shares have
returned about half the 250% investors have made on Chipotle
Mexican Grill CMG.N stock over five years, including
dividends, after investor Bill Ackman got involved. That's a
gap that could make an activist hungry. (By Lauren Silva
Laughlin)
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McDonald's Board of Directors Statement https://www.prnewswire.com/news-releases/mcdonalds-board-of-directors-issues-statement-in-response-to-carl-icahn-301486183.html
WSJ report https://www.wsj.com/articles/carl-icahn-mcdonalds-pigs-gestation-crates-11644335198?mod=hp_lead_pos13
Icahn Enterprises SEC filing https://www.sec.gov/ix?doc=/Archives/edgar/data/813762/000155837021014133/tmb-20210930x10q.htm
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(Editing by Richard Beales and Pranav Kiran)
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