Activist investor takes stake in McDonald's, may push for major changes
SEAFOODNEWS.COM [Nation's Restaurant News] By Jonathan Maze - November 17, 2014 -
McDonald’s Corp.’s struggles this year have led to speculation that the company could become a target for activist investors. Unsurprisingly, a disclosure Monday by a well-known activist fund in the Chicago-based burger giant generated considerable buzz about what could happen next.
Jana Partners LLC disclosed in an SEC filing Friday that it has purchased more than 800,000 shares in McDonald’s.
McDonald’s low debt level and relatively low stock price make it a potential target for activists. Its price-to-earnings multiple is about 19x — meaning its per-share price is 19 times its earnings per share. By contrast, Yum! Brands Inc., The Wendy’s Co. and Jack in the Box Inc. all trade with ratios ranging from 23x to 32x. Burger King Corp., which is about to buy Tim Hortons Inc. and is fully franchised, has a price-to-earnings multiple of 65.
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