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  "documentTitle": "McDonald's Corporation (MCD)",
  "authorId": "01_Pershing_Square",
  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2006-01-18 00:00:00",
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  "notes": "Uses sum-of-the-parts valuation logic to justify a higher share price.",
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      "text": "Only when Pershing's ideas regarding transparency became public did Wall Street analysts begin deriving sum-of-the parts valuations in the mid $40s per share. Recent UBS sum of the parts valuation: $46 per share. Recent Goldman Sachs sum of the parts valuation: $44 per share.",
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      "text": "Only when Pershing's ideas regarding transparency became public did Wall Street analysts begin deriving sum-of-the parts valuations in the mid $40s per share",
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      "text": "McDonald's currently trades at roughly 8.9x EV/2006E EBITDA, despite over 85% of its pre-tax unlevered cash flows being generated by Brand McDonald's.",
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      "text": "High branded intellectual property/franchise businesses such as Choice Hotels, PepsiCo and Coca-Cola trade in the range of 12x – 19x EV/'06E EBITDA. Real Estate C-Corporations and REITs typically trade in the range of 13x-16x EV/'06E EBITDA.",
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      "text": "We believe Brand McDonald's, valued independently, is worth 12.5x – 13.5x EV/'06E EBITDA.",
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      "text": "Based on McDonald's recent stock price of $34 per share. Pre-tax unlevered cash flows calculated as FY'05E EBITDA- Maintenance CapEx. UBS research report dated 11/10/2005. Goldman Sachs research report dated 11/18/2005.",
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      "text": "Lack of transparency had created an undervaluation by the market",
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      "text": "Objective 3: Unlock Shareholder Value at McDonald's (cont'd)",
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