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  "documentTitle": "McDonald's Corporation (MCD)",
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  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2006-01-18 00:00:00",
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  "notes": "The slide uses a 'Pershing' perspective to frame the conflict as a systemic issue.",
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      "text": "Pershing spoke with franchisees from around the world. Here's what they told us:",
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      "text": "Pershing spoke with franchisees from around the world. Here’s what they told us:",
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      "text": "McOpCo does not compete on equal footing because it does not pay a market rent or franchisee fee. Suboptimal pricing or capital allocation decisions do not impact McOpCo's financials as dramatically as those of franchisees. Perception among franchisees is that McOpCo is not held to the same degree of accountability.",
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      "text": "(2) McOpCo, with its subsidized economics, magnifies this conflict",
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      "text": "(1) Inherent conflict between McDonald's and the Franchisees: McDonald's 'Top-line' focus versus Franchisees' 'Bottom-line' focus",
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      "text": "McDonald's makes the bulk of its profits from the franchisees' top line. However, top line same-store sales growth does not always translate into improving franchisees' bottom line. Stock market often rewards McDonald's for higher same store sales growth even though the franchisees are sometimes pressured to sacrifice margin for discount pricing.",
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      "text": "Objective 2: Strengthen the McDonald's System",
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