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
McDonald's as well
as McOpCo.
A Transformational Transaction (Cont'd)
Allows for a voice in McOpCo through governance
Given its 35% stake in McOpCo post spin-off, PF McDonald's will be able to
elect several Board seats to the new entity
Governance affords visibility in McOpCo operations, which will help in:
managing the McDonald's brand
extending new products through the franchisee system
remaining in touch with unit-level economics and issues
Supported by highly similar, successful precedent
transactions
► Coca Cola Company carved-out its owned bottling operations in 1986 in what is
widely viewed as one of the most successful restructurings of all time
PepsiCo followed suit in a similar transaction in 1999, with unanimous support
from the Wall Street research analyst community
Allows for an accelerated McOpCo refranchising program
Increases overall size of PF McDonald's investor base
Strong potential to attract both dividend / income-focused investors and real
estate-focused investors
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