Pershing Square Activist Presentation Deck
D
A Revised Proposal for Creating Value
at McDonald's
Assuming McOpCo
pays a market rent
and franchisee fee, we
have modeled
McOpCo FY '06E
EBITDA of $1.1 billion
and Brand McDonald's
FY '06E EBITDA of
$4.5 billion.
Based on these
assumptions, we
believe McDonald's
stock price would
trade in the range of
approximately $46 -
$50 per share, as a
result of a 20% IPO of
McOpCo.
McDonald's Sum-of-the-Parts Analysis at
Various Multiples
Assuming Transparent Segment Financials
McDonald's Equity Value per Share
Brand McDonald's EV/2006E EBITDA
McOpCo
EV / '06E
EBITDA
Multiple
12.0x 12.5x 13.0x 13.5x
6.0x $42.97 $44.86 $46.74
$44.86
$46.74
$48.62
6.5x 43.45
45.33
47.21
49.10
7.0x 43.93 45.81 47.69 49.57
7.5x 44.40 46.28 48.17 50.05
Final Revised Proposal.ppt
Note: Assumes 75% of consolidated G&A is allocated to Brand McDonald's, with the rest allocated to McOpCo. Assumes McDonald's FY '05E Net Debt of $8.1bn,
Minority Interest in McOpCo of $1.3bn, and FY'05E Diluted Shares Outstanding of 1,186mm, all pro forma for Pershing's Revised Proposal.
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