{ "docId": "019de513-2977-769c-b1d6-0eb293cc0c1b", "docSlug": "83f2ae0a352a4a6cd7e66f7d7cc539ad", "documentTitle": "McDonald's | Shareholder Engagement Presentation Deck | 40 slides", "authorId": "mcdonalds", "authorName": "McDonald's", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2022-05-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 12, "pageCount": 40, "prevPage": 11, "nextPage": 13, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "overcrowded", "nDataPoints": 1, "notes": "The slide uses a combination of legal argument and scientific appeal to authority to discredit a shareholder proposal.", "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de513-2977-769c-b1d6-0eb293cc0c1b/12", "deckHref": "/decks/019de513-2977-769c-b1d6-0eb293cc0c1b", "deckJsonHref": "/decks/019de513-2977-769c-b1d6-0eb293cc0c1b.json", "deckAnchorHref": "/decks/019de513-2977-769c-b1d6-0eb293cc0c1b#slide-12", "components": [ { "bbox": { "h": 0.06, "w": 0.9, "x": 0.05, "y": 0.87 }, "kind": "callout", "text": "Icahn’s “crate-free” demand is so obscure that it represents an extremely niche market comprising less than 0.1% of U.S. pork production", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "25a0939d-8d6f-4fda-828b-ee0911b88d74", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.52 }, "kind": "list", "text": "For example, in 2010, the State of Ohio struck an agreement with the Humane Society of the United States to phase out the use of gestation stalls for confirmed pregnant sows within Ohio by the end of 2025. According to the agreement, which was signed by the Humane Society, “[i]t is understood that in all housing systems, sows may be housed in breeding/gestation stalls until they are confirmed pregnant”. This was codified by Rule 901:12-8-02 promulgated under the Ohio Administrative Code, which provides that breeding/gestation stalls may be used post-weaning for a period of time that seeks to maximize embryonic welfare and allows for the confirmation of pregnancy—a period that veterinary scientists estimate to be four to six weeks.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "41ebe55c-cd75-414a-8769-72f39d882add", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.87, "x": 0.08, "y": 0.78 }, "kind": "list", "text": "Our 2012 commitment was made with input from animal welfare advocates, agricultural experts and veterinary scientists. It was understood then, and remains so today, that there is a period of a breeding sow’s life when it should not be housed in a group setting: during the insemination process and until a pregnancy is confirmed, which best promotes a successful pregnancy", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "de22ab06-e5a0-4859-b61a-db99e661ed19", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.27 }, "kind": "list", "text": "Proposition 12 is under temporary halt on enforcement of the prohibition on pork from gestation stalls, due to the state’s two-year delay in finalizing regulation. This proposed law is focused on whole or premium fresh cuts, whereas McDonald’s buys ground pork and strip and Canadian bacon that is fully or partially cooked.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e9ad18dd-194f-49ca-beee-05ff1beedb00", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.18 }, "kind": "paragraph", "text": "Icahn is demanding compliance with California’s Proposition 12, which is currently being legally challenged, and is not enforceable by law. Furthermore, if enforced, this Proposition would not apply to McDonald’s products.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f30e6824-3419-4601-8f44-fa1f7ac440fd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.43 }, "kind": "paragraph", "text": "However, several states have passed laws addressing the transition to group housed sow production for all types of pork products, with criteria that is consistent with McDonald’s 2012 commitment:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fe409786-b862-49bb-9266-e33da1031a5f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.94 }, "kind": "source-note", "text": "(1) “Cut” for purposes of section 25991(u) of the Health and Safety Code and this Article means any uncooked primal, wholesale, sub-primal or retail cut including, but not limited to, those identified and described in the United States Department of Agriculture’s Institutional Meat Purchase Specifications (IMPS): Fresh Pork Series 400 (November 2014 Edition) and the 2014 Uniform Retail Meat Identity Standards (URMIS) developed by the Industry-Wide Cooperative Meat Identification Standards Committee, but shall exclude any ground or otherwise comminuted meat products.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "94937324-a9ce-40f8-915e-ac5aa66cd9ef", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Icahn’s “crate-free” demand reflects a departure from accepted science and cites a Proposition that is not applicable to McDonald’s", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0b950e74-86c4-42b8-a872-99dc268204d5", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "5f58d7c6-6a9f-42f6-b19b-774683d713aa", "evidence": "Citing Ohio Administrative Code and veterinary scientists to validate company policy.", "confidence": 0.9 } ], "arcBeats": [ { "to": 12, "from": 5, "beatId": "aba1f910-d84a-44f2-9b48-f68230afb61d", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Problem & Complication", "beatSlug": "consultants-gambit-problem-complication", "evidence": "The deck presents McDonald's approach to animal health & welfare and Icahn's 'crate-free' demand", "position": 1, "confidence": 0.8, "parentBeatName": "Complication", "parentBeatSlug": "complication" } ], "loops": [ { "to": 15, "from": 12, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "bb5317cc-b8f6-4646-9b17-9e397552fb7c", "evidence": "The deck presents the economic implications of Icahn's demand", "position": 1, "objective": "What happens if Icahn's 'crate-free' demand is implemented", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }