Pershing Square Activist Presentation Deck

II. Pershing's View of McDonald's Once adjusted for market rent and franchise fees, McOpCo would be contributing only 14% of total EBITDA-Maintenance Capex, with the Real Estate and Franchise business contributing 86% of total EBITDA-Maintenance Capex ,based on FY 2005E projections. 2005E Total EBITDA - Capex As Reported Real Estate and Franchise 53% Adjusting for Market Rent and Franchise Fees (Cont'd) McOpCo PF McDonald's Total '05 EBITDA- Maint. Capex $1.9bn 2.2bn $4.1bn McOpCo 47% % 47% 53% 100% 2005E Total EBITDA - Capex Adjusted for Market Rent and Franchise Fees 16 Real Estate and Franchise 86% McOpCo PF McDonald's Total McOpCo 14% '05 EBITDA- Maint. Capex $0.6bn 3.5bn $4.1bn % 14% 86% 100% The analysis assumes that 75% of the total G&A is allocated to the Real Estate and Franchise business and 25% is allocated to McOpCo. McDonald's management has indicated this is a conservative assumption regarding the real estate and franchise business. In addition, we note that 2005E maintenance capex includes certain one-time capital expenditures related to systemwide remodeling program. Please see appendix for full reconciliation

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