Pershing Square Activist Presentation Deck
III. Pershing's Proposal to McDonald's:
McOpCo IPO
An IPO of McOpCo
would have several
positive strategic
and financial
implications for
both Pro Forma
McDonald's as well
as McOpCo.
(1) Based on recent stock price of $33 per share.
McOpCo IPO:
A Transformational Transaction
Significant value creation for shareholders
PF McDonald's would trade at an approximate 37%-52% premium over
where it trades today, in the range of approximately $45-50 per share (¹)
Creates investor transparency
▸ Deconsolidation provides investors with transparent insight into PF
McDonald's profitability (60% EBITDA margins), attractive FCF profile
(35% levered FCF margins) and world-class real estate/franchise assets
► Separation of McOpCo highlights the significant value of rental income
and franchise fees currently eliminated in consolidation
Enhances management focus and incentives at both
entities
► Enhances ability to attract and retain top McOpCo management
Allows PF McDonald's management team to focus on new product
innovation, improved marketing efforts, stronger real estate development
programs and higher quality franchisee performance monitoring / training
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