Pershing Square Activist Presentation Deck
What Happened at McDonald's
McDonald's 2002-2003 (1)
Problems:
X
Weak new products
Ineffective marketing
Poorly performing owned stores
Issues with capital allocation
Weak system wide same-store sales
Market perception:
"McDonald's is a poor performing
restaurant company in need of
a turnaround"
(1) Time period referenced is 2002 through the first half of 2003.
4
McDonald's Today
What it Did:
Introduced strong new products
Improved marketing: "I'm Lovin' it"
ā Slowed US unit growth,
refranchised 30% of McOpCo stores
and improved margins
Improved disclosure between Brand
McDonald's and McOpCo
ā Increased share repurchases and
raised the dividend 3.75x
Market perception:
"McDonald's is a global brand
business with strong momentum
and significant cash flows"View entire presentation