Pershing Square Activist Presentation Deck

II. Pershing's View of McDonald's Maintenance Capital Requirements: Risk Profile Typical EBITDA Margin: Typical average cost of capital:(2) Minimal Landlord Characteristics of Cash Flow Streams Real Estate and Franchise Business Triple net leases Very Stable / Minimal Risk Generates the greater of a minimum rent or a % of sales (current average ~ 9%) 70%-90% Margins Some real estate development expenses Minimal: 5.75%-6.5% Real estate holding companies typical asset beta: ~.40 ►Hard asset collateral Low Add n Franchisor Stable / Low Risk McDonald's Limited remodel subsidies as well as corporate capex Low operating leverage Diverse and global customer base 30%-50% Margins Low: 6.5%-7.5% ►Choice Hotels, Coke and Pepsi - typical asset beta: ~.50-.60 Highly leveragable High McOpCo Restaurants Significant maintenance capex Medium Risk High operating leverage Sensitivity to food costs 7%-10% Margins (¹) High food, paper and labor costs Rent Franchise fee Medium: 8%-9% ►Mature QSR typical asset beta: ~.80-.90 (1) Typical margins are illustrative restaurant EBITDA margins and assume the payment of a market rent and franchisee fee, similar to a franchisee. (2) Typical betas are Pershing approximations based on selected companies' Barra predictive betas. Average cost of capital estimates are illustrative estimates based on average asset betas. 14

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