Pershing Square Activist Presentation Deck
II. Pershing's View of McDonald's
In 2004, McDonald's company-operated restaurants appeared to contribute 46% of total EBITDA.
However, once adjusted for a franchise fee and a market rent fee, McOpCo constituted only 22% of total
EBITDA, with the higher multiple Real Estate and Franchise businesses contributing 78% of total EBITDA.
2004 Total EBITDA
As Reported
54%
Real Estate
and Franchise
McOpCo
Real Estate and Franchise
Total
46%
Adjusting for Market Rent and Franchise Fees
2004 EBITDA
$2.4bn
2.8bn
$5.2bn
McOpCo
46%
54%
100%
2004 Total EBITDA Adjusted for
Market Rent and Franchise Fees
78%
Real Estate
and Franchise
McOpCo
Real Estate and Franchise
Total
22% McOpCo
2004 EBITDA
$1.1bn
4.0bn
$5.2bn
22%
78%
100%
Note: The analysis assumes that 75% of the total G&A is allocated to the Real Estate and Franchise business and 25% is allocated to McOpCo. McDonald's management has
indicated this is a conservative assumption regarding the Real Estate and Franchise business. Analysis excludes $441 mm of non-recurring other net operating expenses.
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