Icahn Enterprises Activist Presentation Deck
THE BOARD IS USING PRICING CONCERNS AS AN EXCUSE
While it will cost the Company near-term capital to eliminate gestation crates, we believe the move will deliver
business and financial benefits over the long-term
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McDonald's cites customer price increases as a reason for its stagnation on the elimination of gestation crates
The truth is McDonald's had 10 years to act and produce a sustainable solution, which does not include putting a strain on customers'
wallets
For example, Whole Foods has acted early on this issue and does not expect its customers to experience prices increases as its
suppliers are already compliant with Proposition 12 (San Francisco Chronicle)
In the near-term, we doubt that McDonald's' customers will abandon the Company if it takes this important step toward better animal
welfare
O As demonstrated by the Company's 3.5% increase in comparable U.S. sales in Q1 2022, strategic price increases do not always
result in the loss of customers and/or sales
In the long-term, the decision to eliminate gestation crates could have a positive financial impact: a 2011 economic comparison in
Canada found that costs for construction of group housing that allowed for more space per sow were 4% cheaper than conventional
gestation crate housing (Well Being International)
Rather than waste $16 million of shareholder capital on this costly proxy contest, we contend McDonald's should
allocate that capital toward responsible, ethical sourcing and other important sustainability and ESG areas.
CAWS
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