Pershing Square Activist Presentation Deck
III. Pershing's Proposal to McDonald's:
McOpCo IPO
An IPO of McOpCo
would have several
positive strategic
and financial
implications for
both Pro Forma
McDonald's as well
as McOpCo.
(1) Will be discussed at length later in the presentation.
A Transformational Transaction (Cont'd)
Will likely lead to improved operating margins at McOpCo
Separation from PF McDonald's will make margin improvement an
imperative
Improves capital structure while maintaining investment
grade credit rating
► Low-cost secured debt to replace current debt or issued incrementally on
current structure
■ Cheap CMBS structured financing issued at PropCo could
judiciously utilize strong real estate collateral
CMBS financing is non-recourse to McDonald's (parent)
FranCo remains unlevered and is at least a AA credit
PF McDonald's, the holding company, remains investment grade
Improves alignment with franchisees (1)
Allows for share buybacks of higher return business
► Separation of McOpCo allows for share buybacks to be targeted
predominantly at PF McDonald's, the stronger free cash flow business
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