Carl Icahn has engaged in a proxy fight with McDonald’s Corp (NYSE: MCD), the fast-food company revealed in a press release on Sunday. Reportedly, the American billionaire investor is not satisfied with how McDonald’s treats pigs.
Icahn’s stake in McDonald’s is worth just over $50,000
Icahn wants McDonald’s to only source pork from the U.S. suppliers that commit to not keeping pigs in crates that are too small for the animals to even turn around. The legendary investor has a rather small stake in McDonald’s, worth just over $50,000.
Responding to Icahn’s demand, McDonald’s confirmed up to 90% of its pork in the U.S. by the end of this year will be sourced from suppliers that don’t use gestation stalls for pregnant pigs. It reiterated commitment to 100% crate-free pork before the start of 2025 but said:
While McDonald’s looks forward to promoting further collaboration across the industry on this issue, the current pork supply in the U.S. would make this type of commitment impossible. It will also harm the Company’s pursuit of providing customers with high-quality products at accessible prices.
Icahn has nominated two new directors to McDonald’s board
McDonald’s had originally committed to phasing out the use of gestation stalls in 2012 – a promise it failed to completely deliver on in a whole decade. Icahn, therefore, doesn’t plan on “fooling around” with McDonald’s anymore and has nominated two new directors to its board.
Mr Icahn’s stated focus in making this nomination relates to a narrow issue regarding the company’s pork commitment, which the Humane Society U.S. has already introduced through a shareholder proposal.
His candidates, Maisie Ganzler and Leslie Samuelrich, will stand for election this year at the annual shareholder meeting. Last month, McDonald’s reported weaker-than-expected results for its fiscal Q4. The stock is down 7.0% for the year.
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