Pershing Square Activist Presentation Deck

D A Revised Proposal for Creating Value at McDonald's Strategic Benefits to the McDonald's System Final Revised Proposal.ppt Pershing believes that a publicly traded arm's-length McOpCo, which remains controlled by McDonald's, would strengthen the McDonald's System. McOpCo makes optimal pricing, capital allocation and refranchising decisions ► Arm's-length McOpCo's decision-making criteria on product pricing and capital allocation will be substantially similar to that of the franchisee community ► McOpCo, no longer subsidized by Corporate McDonald's, will review its restaurant portfolio more closely for refranchising rationalization / opportunities ■ Refranchising program would create an incentive system whereby the best operators would be rewarded with an opportunity to own new units Poor performing operators will be motivated to improve performance to earn the right to own more restaurants Franchisees would recognize that the new McOpCo competes on equal footing McOpCo, required to pay arm's-length rent and franchise fees, would face the same economic consequences as franchisees, thus creating a better aligned system ► Improves fairness and accountability throughout the system 32

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