Pershing Square Activist Presentation Deck
a
A Revised Proposal for Creating Value
at McDonald's
Strengthening the McDonald's System:
What Franchisees Had to Say (cont'd)
(4) McOpCo undercuts on pricing
► McOpCo's subsidized economics reduce the impact of lower margin product pricing decisions
Final Revised Proposal.ppt
As such, approximately 27% (¹) of the McDonald's system currently does not price optimally
Reduces the profitability of the entire system
Underpricing at McOpCo pressures franchisees to sacrifice "penny profits" for traffic
and sales volume
(5) McDonald's should retain control of McOpCo
▸ Franchisees generally agreed that control of McOpCo should remain with McDonald's
Keeps the franchisee vote democratic and dispersed
(1): Based on approximately 8,119 McOpCo restaurants out of 30,516 systemwide McDonald's restaurants, as of 2004.
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