McDonald's Corporation (MCD)
Positive move on beef policy portending larger changes to come?
Fast food giant vows to begin measuring antibiotic usage in its top 10 sourcing markets (~85% of supply), set reduction targets, and require suppliers to produce progress reports, raising its timely ESG Pulse score on the Truvalue Platform.
- Despite these positive steps, MCD’s core business model is risky in the long-term.
- Risks remain until the carbon price of beef is fully accounted for, among other key ESG issues that must be addressed.
- Ongoing ESG performance improvements are necessary to maintain valuation premium.