McDonald's CEO says no plan to spin off properties into REIT
- 9 years ago
McDonald's Corp will not spin off its properties into a real estate investment trust , Chief Executive Steve Easterbrook said at the company's investor meeting on Tuesday.
The company also raised its quarterly dividend to 89 cents per share from 85 cents as part of a broader move to return more cash to its shareholders.
After significant deliberation, the company determined that a REIT was not the best interest of shareholders.
The potential upside was not compelling and the risks were too great, Easterbrook said.
Larry Robbins, chief executive officer of Glenview Capital Management which owns shares of the company, had lobbied for the REIT, saying it could unlock more than $20 billion in value.
The company also raised its quarterly dividend to 89 cents per share from 85 cents as part of a broader move to return more cash to its shareholders.
After significant deliberation, the company determined that a REIT was not the best interest of shareholders.
The potential upside was not compelling and the risks were too great, Easterbrook said.
Larry Robbins, chief executive officer of Glenview Capital Management which owns shares of the company, had lobbied for the REIT, saying it could unlock more than $20 billion in value.