Pershing Square Activist Presentation Deck
V. Developing a Response to the
Company
Franchisee Alignment:
Benefits to Franchisees of an independent
McOpCo
McOpCo IPO would shift some power to the franchise
base-A good thing
▸ Franchisees know what's best operationally
Franchisees have been the source of most product innovations (i.e. Big
Mac, Egg McMuffin, Filet-o-Fish, Apple Pie)
Driving force behind current process innovations (call centers at drive-
thru)
IPO would sharpen focus on being best in class franchisor
Level the playing field: McOpCo should compete on the
same basis as franchisees
Pay market rent and franchise fees
Be focused on bottom-line profitability
Be run by equity compensated management
Opportunity for Franchisees to expand unit count
Heavy demand among operators to acquire/manage additional units
McOpCo should refranchise units better managed by franchisees
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