Icahn Enterprises Activist Presentation Deck
MCDONALD'S COULD FACE SERIOUS BUSINESS & REPUTATIONAL
RISKS
If the McDonald's Board does not immediately improve on ESG, we believe it could cause the Company and its
shareholders serious harm over the next five to 10 years
Financial
Challenges
If McDonald's continues to
drag its feet on animal
welfare and other ESG issues,
the Company could see a
negative reaction in its share
price or struggle to raise
capital from firms and banks
that consider ESG
performance as a factor
Gestation-free pork suppliers
are already experiencing
increased demand, so the
longer McDonald's waits, the
more expensive it could be
for the Company
CAWS
Loss of Customers & Market
Share
■ If McDonald's neglects to
prioritize ESG on its corporate
agenda, it could see a significant
loss of customers, leading to a
reduction in its market share as
competitors step up their ESG
efforts
Regulatory
Issues
Gail Glazerman
Team: ESG
BI ESG Analyst
If McDonald's continues to
lag on this key issue, it could
run the risk of being
noncompliant with U.S. laws
and ultimately, face penalty
fines or regulatory action
Restaurants Managing the Supply Chain Is
Essential
Environmental and Social Risks Embedded in the Supply Chain
(Bloomberg Intelligence) -- Restaurants face supply-chain risks, both social and environmental,
which can have tangible financial consequences. Animal welfare is a rising concern, backed in
some cases by government regulation. Meeting these rules could inflate costs; failure to do so may
cause reputational damage. In addition, sourcing agricultural products may become more difficult
amid extreme weather, with crops at risk to drought and floods. (04/22/22)
Source: Bloomberg Intelligence, April 22, 2022
Reputational
Harm
If McDonald's fails to make
meaningful progress on key
ESG issues that are important
to its stakeholders and
society, the Company's strong
international brand could
suffer as a result
Regulation echoes public
desire; as evidenced by
Proposition 12, consumers
are demanding sustainably
sourced pork
33View entire presentation