Pershing Square Activist Presentation Deck

V. Developing a Response to the Company Franchisee Alignment: "Skin in the Game" Franchisor/Franchisee Conflict ► Top Line (percent of sales) vs. Bottom Line Some believe this conflict is mitigated by owning and operating units However, many of the most successful franchisors operate few, if any, units Historical McDonald's ► Subway Dunkin' Donuts Tim Hortons McDonald's current "skin in the game" is overstated due to lack of transfer pricing ► We believe McOpCo represents ~10% of McDonald's total value PF McDonald's role as landlord, franchisor, 35% shareholder and board member, leaves them with ample skin in the game 45

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