McDonald’s would sell off 1,600 Latin Outlets

McDonald’s would sell off 1,600 Latin Outlets

McDonald’s Corp. has revealed that they have now agreed to the demands made by the activist investor Bill Ackman and they would now sell off almost 1,600 restaurants in Latin America and the Caribbean.

The company now aims to raise $700 million from these sales for dividends and stock buybacks. McD also came out with their latest quarterly report and reported that first-quarter earnings climbed 22 percent.

Woods Staton would be acquiring the stores in Brazil, Mexico and other Latin American countries.

McD further said that they are now planning to spend at least $5.7 billion on dividends and share repurchases over the next two years. They are under pressure from the investors to improve the stock price at the stock exchange.

The company also added that they bought back $1 billion worth of stock in the first quarter. They would now take a second- quarter charge of $1.6 billion for the Latin American sale.