McDonald's nixes REIT

McDonald's plans to ramp up its cost-cutting efforts, increase the number of restaurants it aims to sell to franchisees and take on billions in new debt to fund share buybacks and dividends in lieu of spinning off its vast real estate holdings.

Speaking to investors and analysts this week, CEO Steve Easterbrook said the financial moves were made to appease investors who had pushed for the company to establish a real estate investment trust for its U.S. properties.

“Our conclusion is that we don't believe it serves the best interests of shareholders to pursue a REIT at this time,” Easterbrook said. “The potential upside is not compelling, and the future value at risk too great.

Read more from Crain's Chicago Business.