McDonald’s, Macy’s Nix REIT Spin-offs
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McDonald’s is moving increasingly to a franchise model at its thousands of locations.
OAK BROOK, IL—McDonald’s Corp. has once again put to rest speculation that it would spin off its owned stores into a REIT, with president and CEO Steve Easterbrooktelling an investors meeting Tuesday that a spin-off would not be in their best interests. Another large-scale retailer that had recently considered a spin-off, Macy’s Inc., has also nixed the idea, revealing its decision Wednesday as part of its third-quarter results.
After weighing the pluses and minuses of a REIT spin-off, McDonald’s leadership determined that “the potential upside is not compelling, and the future value at risk too great,” Easterbrook said at Tuesday’s meeting. Investors including Glenview Capital Management have pushed the fast-food giant to spin off its real estate; earlier this year, Glenview chief Larry Robbins cited a REIT structure as one of a number of ways to boost McDonald’s stock prices…
