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  "docId": "019dd923-622c-750b-8b9b-296b2ce8c9e2",
  "docSlug": "70a313a8c0c3",
  "documentTitle": "McDonald's Corporation (MCD)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "presentationDate": "2005-11-15 00:00:00",
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  "notes": "The slide uses an org-chart style diagram to illustrate the business structure and highlights a specific accounting/operational critique regarding transfer pricing.",
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      "kind": "callout",
      "text": "Reported financials have overstated margins due to a lack of transfer pricing: Not charged a franchise fee; Not charged a market rent.",
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      "text": "Reported financials have overstated margins due to a lack of transfer pricing",
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      "kind": "diagram",
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      "text": "Approximately 32,000 restaurants where McDonald's receives 4% of unit sales.",
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      "text": "Approximately 9,000 Company-operated restaurants.",
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      "text": "McDonald's controls substantially all of its systemwide real estate; Estimated 11,700 restaurants where McDonald's owns both land/buildings and 7,000 where it owns buildings; $1.3B income from subleases; $46B real estate value (~94% of EV).",
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      "text": "Enterprise Value: $46bn",
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      "kind": "source-note",
      "text": "(1) Assumes that McDonald's owns the land and buildings of 37% of its system wide units and owns the buildings of 22% of its system wide units. (2) Valuation based on Pershing estimates. See page 64 for more detail on real estate valuation.",
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      "kind": "title",
      "text": "A Landlord, Franchisor and Restaurant Operator",
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