Makes the current managament group sound like a bunch of corporate raiders.
Borrowing money to buyback stock is NEVER a good idea, and a sign of a management team desperately trying to keep inflating the stock price.
Buying back stock to hold or increase the stock price is more of a trick than sound financial management. Buying stock because of short term momentum in the press is risky for short term gain. Corporate debt that does not add value greater than the amount of the debt to create it is foolish. Debt to support operations or to support an entrenched bureaucracy is really foolhardy. Debt to finance politically correct programs is poor. I believe that MCD has high debt levels over and above its needs. If true, look for a steady pull back in the stock price over the next two years.
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