McDonalds Stock Price, News & Analysis

On May 26, 2022, McDonald's Corporation (NYSE: MCD) announced that shareholders re-elected all 12 directors during the annual meeting. Notably, Carl Icahn's two nominees received only about 1% of the votes and were not elected. The leadership expressed gratitude for shareholder support, emphasizing the board's diversity and experience in guiding sustainable value creation and addressing social and environmental challenges. McDonald's remains committed to ESG initiatives, including animal welfare, while focusing on serving the interests of shareholders.

McDonald's Corporation announced its decision to exit the Russian market and has signed a sale and purchase agreement with existing licensee Alexander Govor for its Russian restaurant portfolio. Govor, who has operated 25 restaurants since 2015, will run these under a new brand. The agreement is pending certain regulatory approvals, with expected closing in the coming weeks. Employees will be retained for at least two years, and the buyer will cover salaries and existing liabilities until the deal closes.

McDonald's Corporation has initiated the process to sell its Russian business, following over 30 years of operation in the country. This decision comes amid the humanitarian crisis due to the war in Ukraine, which made continued ownership untenable. McDonald's will 'de-Arch' its restaurants, ceasing to use its brand and menu while retaining trademarks. The company expects a non-cash charge of $1.2-$1.4 billion for the write-off and foreign currency translation losses. Despite this, McDonald's reaffirms its 2022 outlook, anticipating strong operating margins and growth in other markets.

McDonald's Corporation reported its first-quarter results for 2022, showing a 11.8% increase in global comparable sales. U.S. sales rose 3.5%, while international segments boosted growth with 20.4% and 14.7% increases, respectively. Systemwide sales topped $5 billion, accounting for over 30% of total sales in key markets. However, net income fell by 28% to $1.1 billion, leading to diluted earnings per share of $1.48. Costs associated with operations in Russia and Ukraine impacted financials significantly.

McDonald's Corporation (NYSE: MCD) responded to Carl Icahn's demands for stricter animal welfare commitments in its pork supply chain. The company emphasized its existing initiatives, stating it only sources about 1% of U.S. pork and does not own any sows. Icahn's request for 'crate-free' pork is deemed impractical, necessitating a dramatic increase in supply and costs. McDonald's highlighted its leadership in animal welfare and criticized Icahn's motives, noting his ownership in a packaging company with no similar commitments. Shareholders are encouraged to consider these factors in the upcoming election.

Carl Icahn, a significant shareholder of McDonald's (MCD), criticizes the company's Board for failing to eliminate gestation crates in its supply chain, violating a decade-old promise. He argues that this neglect undermines the company's credibility in corporate governance and ESG efforts. Icahn urges shareholders, especially asset managers focused on ESG, to elect his nominees for the Board, claiming they will prioritize animal welfare and sustainability. He emphasizes that McDonald's has an obligation to lead in ethical practices and address animal welfare issues seriously.

On February 20, 2022, McDonald's Corporation responded to Carl Icahn's nomination of Leslie Samuelrich and Maisie Ganzler for election at the 2022 Annual Meeting. The Board will assess these nominees per its selection process. Icahn's nomination focuses on McDonald's pork commitment, where the company leads with a pledge to source 85%-90% of U.S. pork volumes from group-housed sows by end of 2022 and aims for 100% compliance by 2024. Despite industry challenges, the Board is dedicated to shareholder value and sustainable practices, emphasizing its existing commitments to animal welfare.

McDonald's Corporation reported strong financial results for Q4 and full-year 2021, with global comparable sales up 12.3% and consolidated revenues increasing by 21% to $23.2 billion. The company's diluted earnings per share surged 59% to $10.04, boosted by strategic gains and operational efficiencies. All segments showed positive sales growth, particularly in the U.S. (up 7.5%) and International Operated Markets (up 16.8%). The company aims to leverage this momentum for sustainable growth, despite ongoing challenges related to COVID-19.