McDonald’s May Turn Up on Activists’ Menus: Real M&A

McDonald’s Corp. may be an activist investor’s next super-sized target.

As the world’s largest restaurant chain loses customers to rivals such as Wendy’s Co. and Chipotle Mexican Grill Inc., it’s beginning to look vulnerable. McDonald’s valuation relative to earnings is now lower than any of its American peers, according to data compiled by Bloomberg. That, coupled with the burger chain’s cash and low debt, are key ingredients for an activist campaign that could force more share buybacks or changes in strategy.