Pershing Square Activist Presentation Deck
Wendy's: A Brand Royalty and Real Estate Company
Even more so than McDonald's, Wendy's is fundamentally a Franchise
and Real Estate business ("Brand Wendy's"). Wendy's company-
operated restaurants ("OpCo"), once adjusted for market rent and
franchise fees, are generating virtually no profits
2008E Total EBITDA
As Reported
Brand
Wendy's
41%
59%
OpCo
'08E EBITDA: $313mm
2008E Total EBITDA Adjusted for
Market Rent and Franchise Fees
7% OpCo
93%
Brand Wendy's
(Franchise and
Real Estate)
'08E EBITDA: $313mm
Note: The analysis assumes that approximately 75% of total Wendy's G&A is allocated to Brand Wendy's business and 25% is allocated to OpCo. The analysis assumes that
rent is charged to OpCo at a 7.25% cap rate. The analysis excludes non-recurring expenses.
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