Icahn Enterprises Activist Presentation Deck slide image

Icahn Enterprises Activist Presentation Deck

THE BOARD HAS FAILED TO DIVERSIFY PROTEIN SOURCES Under the incumbent Board, McDonald's remains wed to its meat-based strategy despite a growing plant-based foods market ā— "The Company is prioritizing chicken and beef offerings, as we expect they represent the largest growth opportunities" - MCD Annual Report 40% of McDonald's' net sales are from products are based on ruminant red meat (Source: ISS ESG Report), and the Company has no public commitment to expanding plant-based options Plant-based foods are not mentioned once in McDonald's' entire climate strategy (CDP Climate Questionnaire) With just one alternative meat option still only in testing, the Company is far behind industry trends and fails to grasp the necessity of meaningfully diversifying its product line to capture consumer trends, mitigate risks and reduce its global impact CAWS GFI Score (0-10) 9.25 9 8 7 6.5 0 Brand Panera Chipotle Starbucks Taco Bell Hardee's McDonald's McDonald's has the lowest score possible on the Good Food Institute's ("GFI") 2019 Scorecard, which evaluates how companies promote and increase offerings of plant- based dishes to appeal to mainstream diners The U.K. continues to be one of our strongest performing markets. In the first quarter performance in the U.K. was fueled by sustained digital momentum and strong menu initiatives like the national rollout of McPlant and the extremely successful Chicken Big Mac promotion. 99 Source: McDonald's Q1 2022 earnings call transcript (4/28/22). Bloomberg McDonald's Pours Cold Water on Report That Its McPlant Burger Is Expanding and all urs guiden McPlant By Leslie Patton April 27, 2022, 2:52 PM EDT Updated on April 27, 2022, 3:48 PM EDT Beyond Meat Inc. pared gains after McDonald's Corp. disputed a report that it plans to keep the McPlant burger as a permanent menu item. The fast-food chain said Wednesday that it has no new plans to announce with Beyond Meat. Shares of the plant-based protein. company had soared earlier in the afternoon after a Fast Company report cited a McDonald's executive as saying the McPlant was sticking around in the U.S. and would be augmented by other Beyond Meat products. Source: Bloomberg article dated 4/27/22 On April 27, 2022, McDonald's swiftly shut down reports that it planned to permanently keep the McPlant burger on its menu in the U.S. Even as consumers express support for plant-based alternative food options, McDonald's has refused to adapt On the Company's Q1 2022 earnings call, CEO Chris Kempczinski even professed that McPlant sales helped grow McDonald's' U.K. sales We believe this is yet another example of McDonald's' leadership's unwillingness to embrace and act on stakeholder feedback. 29
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