Pershing Square Activist Presentation Deck
But McDonald's Was Not a Restaurant Company...
McDonald's company-operated restaurants ("McOpCo") appeared to
contribute -50% of total EBITDA. However, once adjusted for market rent
and franchise fees, McOpCo actually constituted ~20% of total EBITDA,
with Brand McDonald's contributing ~80% of total EBITDA.
EBITDA
As Reported
52%
Brand McDonald's
48%
McOpCo
EBITDA Adjusted for
Market Rent and Franchise Fees
78%
Brand McDonald's
22%
McOpCo
Note: Based on 2005A Reported financials. McOpCo contribution includes Other Brands. The analysis assumes that approximately 79% of the total G&A is allocated to Brand
McDonald's business and 21% is allocated to McOpCo. Analysis excludes non-recurring expenses and other net operating expenses.
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