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McDonald's could be next activist investor target

Published Tue, Oct 28, 2014 · 09:50 PM
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AS McDonald's Corp, the world's largest restaurant chain, loses customers to rivals such as Wendy's Co and Chipotle Mexican Grill Inc, it's beginning to look vulnerable. Its valuation relative to earnings is now lower than any of its American peers.

That, coupled with the burger chain's cash and low debt, are key ingredients for an activist campaign that could force more share buybacks or changes in strategy.

The days of McDonald's US$90 billion market value …

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