OAK BROOK Ill. McDonald’s Corp. could sell its Latin American operations for up to $1.8 billion as early as this month, Mark Kalinowski, restaurant analyst for The Buckingham Group, alerted clients Thursday afternoon.
The deal would shift “operational control” of McDonald’s holdings in Brazil and Argentina, Kalinowski wrote in a report. Citing “industry sources,” he said the buyers could include UBS Pactual, GP Investments, and an Argentine businessman named Wood Staton, who already operates McDonald’s units in his home country.
The sale of operations to development licensees would provide less risk from McDonald’s perspective, as it would receive a steady stream of royalties from operations, Kalinowski noted.
McDonald’s did not issue any statement on Kalinowski’s report.
Kalinowski speculated that the proceeds might be used by McDonald’s to repurchase shares or as a one-time special dividend.