Pershing Square Activist Presentation Deck
a
A Revised Proposal for Creating Value
at McDonald's
Final Revised Proposal.ppt
Strengthening the McDonald's System:
What Franchisees Had to Say
(3) Capital allocation criteria I decision-making process varies between McOpCo
and the franchisee community
► Low ROIC investments are occasionally forced upon franchisees
► McOpCo regional managers often make capital investment decisions they will not have to live with,
given their status as salaried employees with limited tenure in any one position
"Made for You" program is an example of a historical capital investment decision that may have
been amended or prevented by an arm's-length McOpCo
■ Hundreds of millions of dollars of capital invested in a kitchen system that is widely
considered inefficient
For many franchisees, it has led to decreased profitability, increased wait times and increased
staffing requirements
■ Testing at McOpCo did not reveal the true economic impact of the program
■ "Made for You" problems could have been prevented if the system had the appropriate
"checks and balances"
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