NEW YORK (TheStreet) -- Shares of McDonald's (MCD) were gaining 1.8% to $90.02 Tuesday amid rumors that an activist investor is looking to take a stake in the fast food chain and pressure management into making changes.
According to Street Insider, activist investor Bill Ackman is rumored to be interested in investing in the company and spinning off real estate assets into a REIT. The publication notes the rumor "is likely trading desk fiction," however.
Ackman previously tried to convince the fast food company to spin-off 65% of its company-owned restaurants in a stock offering in 2005, but ended up backing away from the company.
Separately, this week McDonald's told Reuters that it was forced to ration French fries in Japan due to labor disputes at ports on the U.S. West Coast delaying potato shipments. The fast food chain is only serving small portions of fries in the Asian country.
TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCDONALD'S CORP (MCD) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."