Pershing Square Activist Presentation Deck

a A Revised Proposal for Creating Value at McDonald's Objective 1: Improve McOpCo's Operating Performance Final Revised Proposal.ppt McOpCo, as a wholly owned subsidiary, is not achieving its full business and financial potential ► McOpCo does not pay a market rent or a franchise fee, unlike a typical franchisee Adjusting for a market rent and a franchise fee, McOpCo has lower average unit margins than those of an average U.S. franchisee "Corporate subsidies" in the form of uncharged rent and uncharged franchisee fees have led to McOpCo being run inefficiently over time Uneconomical capital allocation decisions Suboptimal pricing policy 7

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