Pershing Square Activist Presentation Deck

O A Revised Proposal for Creating Value at McDonald's Further Upside to Our Valuation Final Revised Proposal.ppt Pershing's valuation is based on the business as it exists today, assuming no further operational improvements. ► Pershing believes that creating a publicly traded arm's-length McOpCo will substantially improve both top-line and bottom-line performance of McDonald's ■ We believe that McOpCo has EBITDA margins of roughly 7.3% (post corporate allocation) (1) Based on comparable restaurant businesses, we believe McOpCo is capable of achieving at least 10% EBITDA margins ► However, Pershing has assumed no incremental operational improvements as part of its valuation We also see potential G&A improvement as an additional opportunity Standalone McDonald's LTM 9/30/05 G&A per systemwide unit of $68k versus YUM! Brands LTM 9/30/05 G&A per systemwide unit of approximately $35k We have not included an IPO / potential spin-off of Chipotle as part of our analysis ► IPO and potential spin-off of Chipotle will create additional value for investors (1) McOpCo EBITDA margins are after adjusting for a market rent and franchise fee and allocating 25% of McDonald's consolidated G&A to McOpCo. 43

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