Pershing Square Activist Presentation Deck
Appendix
Sales by Company Operated Restaurants
Rent from Franchise and Affiliate Rest.
Set forth below is a table which reconciles McOpCo's, Brand McDonald's and stand-alone McDonald's FY 2004A
income statements, assuming McOpCo pays a market rent and franchise fee. The analysis demonstrates that the
Brand McDonald's contributed approximately 78% of total EBITDA.
Rent From Company Operated Rest.
Franchise Fees From Franchise and Affiliate Rest.
Franchise Fees From Company Operated Rest.
Total Revenue
Company Operated Expenses:
Food and Paper
Compensation & Benefits
Non-Rent Occupancy and Other Expenses (excl. D&A)
Company Operated D&A
Company-Operated Rent Expense
Additional Rent Payable to PropCo
Franchise Fee Payable to FranCo
Total Company Operated Expenses
Franchised Restaurant Occupancy Costs
Franchise PPE D&A
Corporate G&A
EBIT
Reconciling McDonald's 2004A P&L
Depreciation & Amortization
EBITDA
% of Total EBITDA
2004
Income Statement
$14,224
3,336
1,505
$19,065
4,853
3,726
2,164
774
583
$12,100
576
427
1,980
3,982
1,201
$5,183
100%
McOpCo
P&L
$14,224
$14,224
4,853
3,726
2,164
427
583
697
569
$13,019
495
710
427
$1,137
22%
Brand
McDonald's
P&L
3,336
1,280
1,505
569
$6,690
347
583
$930
576
427
1,485
3,272
774
$4,046
78%
Inter-Company
Eliminations
(1,280)
(569)
($1,849)
(583)
(697)
(569)
($1,849)
Final Revised Proposal.ppt
$0
2004
Consolidated
Sum of Parts
$14,224
3,336
1,505
$19,065
4,853
3,726
2,164
774
583
$12,100
576
427
1,980
3,982
1,201
$5,183
100%
The analysis assumes that 75% of the total G&A is allocated to Brand McDonald's and 25% is allocated to McOpCo. McDonald's management has indicated that this is
a conservative assumption regarding the real estate and franchise business.
Note: Analysis excludes $441 mm of non-recurring other net operating expenses. 49
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