Pershing Square Activist Presentation Deck
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A Revised Proposal for Creating Value
at McDonald's
Our Revised Proposal
Step 1: Issue Transparent
Segment Financials
► McOpCo signs arm's-length lease and
franchise agreements with McDonald's
Corporation
■ McDonald's Corporation requires
McOpCo to pay a market rent and
franchise fee
► McDonald's Corporation issues
transparent segment financials for
arm's-length McOpCo and Brand
McDonald's
(1) Assumes IPO transaction fees and expenses of 5% of IPO proceeds.
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Step 2: IPO 20%
of McOpCo
Final Revised Proposal.ppt
► McOpCo creates a separate Board of
Directors
■ At least one Board member appointed
from the franchisee community
► IPO 20% of McOpCo
20% IPO will generate no tax costs
given existing tax basis
► McDonald's retains full control of McOpCo
Minimal execution risk
Frictional costs of roughly 5 cents per share (¹)
(versus management estimates of $4-$5 per
share for the Initial Proposal)
ContinuedView entire presentation