Icahn's pork fight at McDonald's is in bad taste

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Carl Icahn thinks suppliers of pork to McDonald’s (MCD.N) are treating their pigs badly, and the 86-year-old investor wants two board seats read more to push for more humane treatment. The $190 billion fast-food chain may deserve an activist. But Icahn is reading the wrong menu.

The first problem is that the billionaire owns just 200 shares, worth maybe $50,000, according to McDonald’s on Sunday. Such a piddling stake hardly earns a hearing.

Second, even if Icahn feels the "affection" for swine reported by the Wall Street Journal, incorporating that into his investing is an improbable shift given his hard-nosed history. Icahn Enterprises (IEP.O) also owns 89% of Viskase Companies (VKSC.PK), a maker of casings for products like hot dogs. McDonald's suggests Viskase's pig welfare commitments fall short of its own.

Third, Icahn has more familiar fodder to focus on. Though other fast-food outlets have done worse, McDonald’s shares have returned about half the 250% investors have made on Chipotle Mexican Grill (CMG.N) stock over five years, including dividends, after investor Bill Ackman got involved. That's a gap that could make an activist hungry. 


PigUA.info by materials reuters.com