really....tell me more about this rumor
UPDATE 1-McDonald's close to decision on structure of U.S. real estate-WSJ
(Adds McDonald's comments, details)
Oct 15 (Reuters) - McDonald's Corp <MCD.N> is close to
deciding what, if anything, to do with its massive U.S. real
estate holdings, the Wall Street Journal reported on Thursday.
McDonald's has not made a decision yet, but "we have had a
lot of review and a lot of debate," the company's board member
Miles White told the WSJ in an interview. (
http://on.wsj.com/1Ln1zgz)
A McDonald's spokeswoman person said the company's senior
leaders will discuss more on the business strategy at its
investors meeting in November.
McDonald's sales have slumped in recent times and that made
some investors and analysts recommend the company spin off its
U.S. holdings, likely as a real-estate investment trust, saying
the move would benefit shareholders, the WSJ said.
The company's directors and executives have evaluated "the
long-term role of real estate" in sustaining McDonald's
performance and its context in a global business model, White
told the Journal.
McDonald's get a significant part of revenue from its real
estate, with rent payments from franchisees rising 26 percent to
over the past five years to $6.1 billion in 2014, the WSJ said.
That was a fifth of total revenue of $27.4 billion in a year
when overall sales and profit fell, the newspaper reported.
(Reporting by Subrat Patnaik and Rosmi Shaji in Bengaluru;
Editing by Savio D'Souza)
((
subrat.patnaik@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 80 6749 8052; Reuters Messaging:
subrat.patnaik.thomsonreuters.com@reuters.net))
Keywords: MCDONALDS STRUCTURE/
Related tickers:
MC DONALD'S-CORP (
MCD)
All English Language News: All English Language News
Other: Business Activities, Commodities International News Service (Reuters), Domestic Newspool (Reuters), Mergers and Acquisition / Changes of Ownership, N American Securities Domestic News Service (Reuters), N American Wealth Management News Service (Reuters), Real Estate Markets, Reuters Corporate Newspool (Reuters), Reuters Markets Newspool (Reuters), Reuters News (Attribution Code), Reuters Securities Newspool (Reuters), Securities International News Service (Reuters), Softs Specialist News Service (Reuters)
Region Related: United States of America
