As it prepares to post a third year of declining sales, McDonald's is considering spinning off all of its US real estate holdings into a new real estate company. The Wall Street Journal reports it, signaling that there are in fact several analysts who are wondering if the move can give some breath to the shareholders. The fast food giant has always supported the importance of not selling the properties but after a long period of crisis recently the financial director, Kevin Ozan, said he will evaluate all the possibilities to give better returns to shareholders.
Larry Robbins, head of hedge fund Glenview Capital Management, said in a letter to investors in May that McDonald's would need to spin off at least $20 billion of real estate. According to analyst firm Sanford Bernstein, McDonald's owns $42 billion in real estate. In the United States alone, the group has 14.000 restaurants and real estate has an estimated value of between 25 and 35 billion dollars. The fast food chain's current market value stands at around $87,5 billion.
