Speaking to Benzinga about the rumor that Pershing Square Capital Management CEO Bill Ackman is seeking a REIT spinoff for McDonald’s Corporation (NYSE: MCD), Morningstar Analyst RJ Hottovy said that there have been a couple of precedents for spinning off a real estate transaction in the restaurant industry.
Most notably, Hottovy pointed out that the Starboard Value-led board for Darden Restaurants, Inc. (NYSE: DRI) is planning to spin off some sort of real estate transaction. That gives the sense that McDonald’s would potentially be allowed to do that, Hottovy said.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
But Hottovy thinks that McDonald’s would still run into problems with its franchisees since it essentially operates as their landlord.
“The fact that Darden doesn’t really have a franchise base, whereas McDonald’s does, is the key difference,” he said.