Carl Icahn pressuring McDonald’s to improve welfare of pigs raised for meat
One of Wall Street’s most fearsome activist investors has launched a campaign to force McDonald’s to change the way it buys pork for its Bacon McDouble Cheeseburgers, Sausage McMuffins and McRib sandwiches.
Carl Icahn, whose long history as an asset stripper precedes him, plans to challenge the practice used by some of McDonald’s pork suppliers of confining pregnant pigs in small crates and not in group housing.
Ichan is best known as an aggressive investor whose history spans hostile efforts to take over companies ranging from TWA, Marvel Comics, RJR Nabisco and US Steel, sometimes ruthlessly “downsizing” companies he takes over.
He owns just 200 shares in McDonalds, valued at approximately $50,000 – far less than the multimillion stakes he typically acquires in companies he targets. But he is using his holding – and his reputation – to push for Leslie Samuelrich, a sustainability-focused investor and president of Green Century Capital Management, and Maisie Ganzler, an executive at Bon Appétit, a restaurant management company, to be put on McDonald’s board.
The fast-food giant promised 10 years ago to end its suppliers’ crate practice and said Sunday that it expects to source 85% to 90% of its US pork from pigs not housed in “gestation stalls” during pregnancy, up from 60% currently, by the end of this year.
But Icahn, who became involved in the issue at the behest of his daughter, Michelle Icahn Nevin, says he had expected the use of the crates to be banned altogether, not merely have sows moved from crates only after they are confirmed pregnant four to six weeks into their 16-week term.
McDonald’s said it would be “impossible” to meet Icahn’s request to end the practice immediately as it would go against “veterinary
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