Pershing Square Activist Presentation Deck
II. Pershing's View of McDonald's
Assuming 75% of G&A is allocated to the Real Estate and Franchise business, an allocation that
McDonald's management indicates is conservative, we indicate below the EBITDA for McOpCo and the
Real Estate and Franchise businesses, as depicted in the reported financials. We note that McOpCo has
historically appeared to contribute approximately ~45% of consolidated EBITDA.
McDonald's Consolidated EBITDA
($ in millions)
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
$4,144
$1,995
$2,149
Historical EBITDA by Business Type:
As Currently Reported
2000
$4,041
$1,893
$2,148
2001
$3,997
$1,841
$2,156
2002
Real Estate and Franchise McOpCo
$4,512
18
$2,072
$2,440
2003
$5,183
$2,403
$2,780
2004
McOpCo
~45%
Real
Estate and
Franchise
~55%
Assumes McOpCo G&A to be 25% of consolidated G&A and Real Estate and Franchise G&A to be 75% of consolidated G&A. Management has indicated this is a conservative
assumption regarding the Real Estate and Franchise business.View entire presentation