Pershing Square Activist Presentation Deck
Wendy's: Summing it Up
(1)
(2)
(3)
After appropriately valuing its high quality franchise and real estate
cash flows, even "unfixed" Wendy's is worth $35 today. If the
Company improves its company-operated store margins, the
business is worth $42
$ in millions except per share data
Franchise Business (1)
Owned Real Estate (2)
Brand Wendy's
Орсо
Equals: Total Value
"Unfixed"
08 EBITDA
Net Debt (³)
Equity Value
Equity Value Per Share
Premium to Current
$215
76
$291
93%
23
7%
$313 100%
"Fixed"
08 EBITDA
$215
76
$291
109
$399
Valuation
Multiple
20
10.5x
7.0x
Valuation
"Unfixed"
$2,256
1,044
$3,300
158
$3,459
($335)
$3,124
$35
25%
"Fixed"
$2,256
1,044
$3,300
761
$4,061
Franchise business segment includes approximately $18mm of rent income associated with real estate leased to Franchisees. All G&A associated with managing
real estate is allocated to the Franchise business for illustrative purposes.
Owned real estate segment assumes a 7.25% cap rate and is based on assumptions detailed on page 18 of this presentation. Owned Real Estate EBITDA excludes
any G&A associated with managing real estate.
Based on Q1 2008 balance sheet.
($335)
$3,727
$42
50%View entire presentation