Reportedly, McDonald’s Corporation (MCD) has raised concerns over Carl Icahn’s demand for the burger chain to stop buying pork from suppliers that keep the animals in crates calling it expensive, and logistically unfeasible. Carl Icahn, who owns roughly $50,000 worth of McDonald’s stock, is pressing the company to change how it sources its pork and has also nominated two directors to the company’s board to help monitor progress on the cause.
The billionaire investor stressed that confining pigs in crates during their pregnancy is inhumane and objectionable, stating that McDonald’s pledged a decade ago to stop buying pork from suppliers that use the crates by the end of this year. However, the company assured that it cares about the health and welfare of the animals in its supply chain but objected to Icahn’s calls for new commitments, stating it would require at least 300-400 times the animals housed today in “crate-free” systems to keep its supply chain running, and eventually burdening the customers.
“McDonald’s inability to fulfill its 10-year-old promise indicates cracks in the board’s highly touted ESG efforts,” Icahn stated, urging fellow investors to back his two board nominees.
McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. To learn more about McDonald’s Corporation (MCD) and to track its progress please visit the Vista Partners McDonald’s Coverage Page.
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