Pershing Square Activist Presentation Deck
II. Pershing's View of McDonald's
"Running a McDonald's is a 363-day-a-year business and an owner/operator,
with his personal interests and incentives, can inherently do a better job than a
chain manager." (1)
Structure
Illustrative Characteristics of Company Operated versus Franchisee Operated Restaurants (2)
Taxes
Leverage
Superior Franchisee Economics
Levered Returns
General manager
--Fred Turner / Former President and CEO
Company Operated
C-Corporation
Corporate level tax
10% - 30%
Low teens
Salaried employee/
corporate manager
(1)
From McDonald's: Behind the Golden Arches, pgs. 288 - 291.
(2) Illustrative leverage and equity return figures. Not based on company data.
22
Franchisee Operated
LLC / Partnership
No corporate level tax
75% - 90%
40% and higher
Owner / EntrepreneurView entire presentation