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  • February 2020
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Highfields Capital and McDonalds

By: Mark Egan and Robin Greenwood
  • Format:Print
  • | Language:English
  • | Pages:17 
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Abstract

McDonald’s reported its fifth consecutive quarter of declining same-store sales growth in early 2015. Despite McDonald’s recent poor performance, Jonathon S. Jacobson, the founder and Chief Investment Officer of Boston-based Highfields Capital Management, had initiated a large position in McDonald’s stock. Jacobson and his team believed that there was enormous upside in McDonald’s stock if management successfully implemented what they perceived to be straightforward operational and financial changes. McDonald’s needed to return to its core competencies of producing quick and reliable burgers and fries. In addition, they believed that financial restructuring could unlock sizable value for investors. Jacobson and his team debated whether to more forcefully articulate their vision for the company and began drafting a letter to Andrew McKenna, McDonald’s Chairman.

Keywords

Mcdonald's; Stocks; Performance Improvement; Operations; Finance; Restructuring; Value Creation; Financial Services Industry

Citation

Egan, Mark, and Robin Greenwood. "Highfields Capital and McDonalds." Harvard Business School Case 220-061, February 2020.
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About The Authors

Mark L. Egan

Finance
→More Publications

Robin Greenwood

Finance
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    Sizing Up Corporate Restructuring in the COVID Crisis

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    Satrix: Competing in the Passive Asset Management Industry in South Africa

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    Conflicting Interests and the Effect of Fiduciary Duty—Evidence from Variable Annuities

    By: Mark Egan, Shan Ge and Johnny Tang
More from the Authors
  • Sizing Up Corporate Restructuring in the COVID Crisis By: Robin Greenwood, Benjamin Iverson and David Thesmar
  • Satrix: Competing in the Passive Asset Management Industry in South Africa By: Mark Egan, Pippa Tubman Armerding and Dilyana Karadzhova Botha
  • Conflicting Interests and the Effect of Fiduciary Duty—Evidence from Variable Annuities By: Mark Egan, Shan Ge and Johnny Tang
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