Pershing Square Activist Presentation Deck
a
A Revised Proposal for Creating Value
at McDonald's
Strengthening the McDonald's System:
What Franchisees Had to Say (cont'd)
Final Revised Proposal.ppt
(6) Strong interest in owning new units / McOpCo refranchising program
▸ Franchisees have a strong interest in buying McOpCo restaurants
■ Given McDonald's exclusivity requirements for franchisees, the only opportunity for
franchisees to materially increase their wealth is to own more McDonald's units
▸ A refranchising program would create an attractive incentive system
Would allow the top quartile performing operators to be rewarded with an opportunity to
increase units
► McOpCo's current portfolio of restaurants needs to be rationalized through refranchising,
in order to
Increase McOpCo's profitability
■ Improve systemwide same-store sales growth
■ Satisfy considerable franchisee demand
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