Pershing Square Activist Presentation Deck
A Revised Proposal for Creating Value
at McDonald's
Stock Price
Pershing believes that McDonald's, pro forma for the McOpCo 20% IPO, would have a 2006E Free
Cash Flow yield of 4.3 % -4.7% at stock price in the range of $46 - $50 per share. We note our
Free Cash Flow calculation is based upon our estimates of 2006E After-Tax Levered Operating
Cash Flow less Growth and Maintenance Capital Expenditures. (1)
2006E FCF Yield
Current
$34
McDonald's Free Cash Flow Yield Analysis
McDonald's 2006E FCF/Dividend Yield at Varous Stock Prices
Projected
$47 $48 $49
6.3%
Final Revised Proposal.ppt
$46
41
4.7%
(1) FCF Yield is based on Attributable Free Cash Flow before dividend payments. See Appendix page 54 for a calculation of FY 2006E Attributable Free Cash Flow.
$50
4.6% 4.5% 4.4% 4.3%View entire presentation