McDonald's won't pursue real estate investment trust
OAK BROOK, Ill. (AP) — McDonald's says it will not pursue spinning off its real estate assets.
The hamburger chain, which is in the midst of a turnaround plan, had been considering the REIT partly because of the potential tax advantages it could provide.
But Chief Administrative Officer Pete Bensen said during McDonald's investor meeting Tuesday that any possible value that could have been created with the REIT was outweighed by "significant financial and operational risks" to the business and the ongoing progress of its turnaround.
McDonald's Corp. also said that it is now looking to refranchise 4,000 restaurants, up from a prior target of 3,500 restaurants. The Oak Brook, Illinois-based company said this puts it in position to meet its new longer-term goal to be 95 percent franchised.