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Pershing Square Activist Presentation Deck

Appendix Sales by Company Operated Restaurants Rent from Franchise and Affiliate Rest. Franchise Fees From Franchise and Affiliate Rest. Total Revenue Set forth below is a table which reconciles McOpCo's, Brand McDonald's and stand-alone McDonald's FY 2004 income statements, as they are currently reported. The analysis demonstrates how McOpCo is paying neither a market rent nor a franchise fee. Company Operated Expenses: Food and Paper Compensation & Benefits Occupancy and Other Expenses (excl. D&A) Company Operated D&A Total Company Operated Expenses Franchised Restaurant Occupancy Costs Franchise PPE D&A Corporate G&A EBIT 2004 McDonald's P&L As Reported Depreciation & Amortization EBITDA % of Total EBITDA 2004 Income Statement $14,224 3,336 1,505 $19,065 4,853 3,726 2,747 774 $12,100 576 427 1,980 3,982 1,201 $5,183 100% McOpCo P&L $14,224 $14,224 4,853 3,726 2,747 427 $11,753 495 1,976 427 $2,403 46% Brand McDonald's P&L 3,336 1,505 $4,841 347 $347 576 427 1,485 2,006 Final Revised Proposal.ppt 774 $2,780 54% 2004 Consolidated Sum of Parts $14,224 3,336 1,505 $19,065 4,853 3,726 2,747 774 $12,100 576 427 1,980 3,982 1,201 $5,183 100% The analysis assumes that 75% of the total G&A is allocated to the Brand McDonald's and 25% is allocated to McOpCo. To the extent that there should be more G&A allocated to McOpCo, then there would be a greater percentage of total EBITDA at Brand McDonald's than what is shown here. Note: Analysis excludes $441 mm of non-recurring other net operating expenses. 48
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