Pershing Square Activist Presentation Deck
(1)
(2)
II. Pershing's View of McDonald's
Landlord
Real Estate and Franchise Business
McDonald's controls substantially
all of its systemwide real estate
Estimated 11,700 restaurants
where McDonald's owns both the
land and buildings and 7,000
restaurants where McDonald's
owns only the buildings (1)
Estimated $1.3 billion of income
A Landlord, Franchisor and Restaurant Operator
generated from subleases
Estimated real estate value: $46
billion or -94% of current
Enterprise Value (2)
McDonald's
Franchisor
Approximately 32,000
restaurants where
McDonald's receives 4% of
unit sales
McOpCo
13
Restaurant Operator
Approximately 9,000 Company-
operated restaurants
Reported financials have
overstated margins due to
a lack of transfer pricing
Currently not
charged a franchise
fee
■ Currently not
charged a market
rent
Assumes that McDonald's owns the land and buildings of 37% of its system wide units and owns the buildings of 22% of its system wide units.
Valuation based on Pershing estimates. See page 64 for more detail on real estate valuation.View entire presentation