Pershing Square Activist Presentation Deck
Brand Wendy's: An Attractive Business
(1)
Brand Wendy's is a
combination of a
Franchise business and
a Real Estate company.
The Franchise business
is a stable, high-margin
business that can grow
with minimal capital
required.
Highly stable, royalty-like
businesses of this nature
typically trade in the
range of 10x - 12x
EBITDA, depending on
growth
For the Franchise business. Assumes Wendy's OpCo
pays a market rent and franchise fee.
WENDY'S
OLD FASHIONED
HAMBURGERS.
Brand Wendy's
Franchise
✓ Collects -4% royalty on Wendy's system sales
✓ Collects rent checks for approximately $1bn of
owned real estate
Real Estate
✓-60% estimated EBITDA Margins (1)
✓ Low maintenance capital requirements
✓ No commodity cost pressures
✓ Highly leverageable
✓ High earnings stability / recurring revenue base
✓ High ROIC
✓ Valuable real estate
✓ Geographically diverse franchisee base
15View entire presentation