Anti-obesity proposal fails again at McDonald's

McDonald's Corp investors soundly rejected a shareholder proposal that would have required the world's biggest fast-food chain to assess its impact on childhood obesity.

The subject was a major topic of discussion at Thursday's annual shareholder meeting, which also served as a send-off for retiring Chief Executive Jim Skinner - whose nearly eight years at the helm will be remembered as a time when the price of McDonald's stock tripled.

The shareholder proposal, which also failed last year, returned amid growing concern over the social and financial costs of obesity in the United States and around the world - not only in terms of healthcare-related expenses but also lower worker productivity and diminished quality of life.

Nearly one-third of U.S. children are overweight or obese. America is one of the fattest nations on earth, and the Institute of Medicine, in a 2006 report requested by Congress, said junk food marketing contributes to an epidemic of childhood obesity that continues to rise. The institute is the health arm of the National Academy of Sciences.

McDonald's executives on Thursday defended the brand and its advertising.

"We're proud of the changes we've made to our menu. We've done more than anybody in the industry around fruits and vegetables and variety and choice," said Skinner, who will retire on June 30 and who received a standing ovation from investors.  (Reuters)