Pershing Square Activist Presentation Deck

B. PF McDonald's Financial Analysis Set forth herein are the assumptions for the Pro Forma McDonald's business. ▶ Pro Forma McDonald's: Model Key Drivers Net Unit Growth ■ Approximates 1.5% - 2.0% of total franchise system unit growth annually or 1.0% - 1.5% of systemwide unit growth Revenue drivers: ■ Average systemwide same-store sales CAGR of -2.5% annually ■ Rental revenue from franchisees of 9.0% of franchise & affiliated system sales ■ Rental revenue from McOpCo of 9.0% of McOpCo sales Franchise revenue from franchisees of 4.0% of franchise & affiliated system sales Franchise revenue from McOpCo of 4.0% of McOpCo sales ■ Cost drivers: ■ Franchise rental expense based on a historical % of rental revenue from franchisees ■ McOpCo rental expense based on a historical % of rental revenue from McOpCo ■ D&A calculated assuming a 20-year useful life for existing net depreciable PP&E of approximately $12.5 billion (excluding land), and a 20-year useful life for depreciable PP&E purchased in the future 75% of SG&A allocated to Pro Forma McDonald's ■ Net CapEx drivers: ■ ■ ■ ■ ■ ■ Other ■ ■ ■ ■ ■ ■ ■ All CapEx is net of proceeds received from store closures $1.3 million of CapEx for each new unit where Pro Forma McDonald's owns the land and the building in 2005 and 2006, growing at an inflationary rate of 2.0% thereafter $650K million of CapEx for each new unit where Pro Forma McDonald's owns the building but not the land in 2005 and 2006, growing at an inflationary rate of 2.0% thereafter Run-rate maintenance CapEx of approximately $320 million, implying approximately $10K per system wide unit, growing at 2% Allocation of 75% of consolidated McDonald's corporate CapEx Consolidated corporate CapEx held constant at 0.7% of sales Incremental total debt of $9.7 billion, resulting in total debt of approximately $14.8 billion (net debt of $14.65bn) Free cash used to buy back shares and pay dividends $150 mm minimum cash balance Tax rate of 32% Minimal working capital requirements 25% Debt to Cap ratio increasing to 30% in 2008 Assumes an illustrative 30% dividend payout ratio to match current consolidated McDonald's 68

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