McDonald's REIT Could Be a Sizzler

Though McDonald's (MCD Quote) management is currently refusing to spin off the company's real estate assets, such a transformation could unlock significant value for shareholders.

Last week, the issue picked up steam when Vornado Realty Trust (VNO Quote), a major real estate investment trust, disclosed that it recently acquired a 1.2% stake in the Big Mac giant.

Activist hedge fund Pershing Square Capital, a 4.9% owner, had previously urged McDonald's to consider spinning off some of its real estate to enhance value. The day before Vornado disclosed its ownership stake in a Securities and Exchange Commission filing, McDonald's CEO Jim Skinner said such proposals wouldn't be in the best interest of shareholders. ...