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  "docSlug": "e8ed5b303558509d41c1162984588b13",
  "documentTitle": "Pershing Square | Activist Presentation Deck | 79 slides",
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  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2016-11-01 00:00:00",
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  "notes": "The slide uses a value-chain style breakdown to explain the economic model of McDonald's real estate and franchise operations.",
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      "kind": "diagram",
      "text": "Landlord, Franchisor, Restaurant Operator vs Franchisees",
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      "text": "Franchise Fee: 4% of restaurant sales; Rent: greater of a minimum rent or a percentage of restaurant sales (current avg. ~9% of sales); Franchisee bears all maintenance capital costs",
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      "text": "II. Pershing's View of McDonald's",
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      "text": "(1) Illustrative return based on Pershing's assumptions for the cost of land and building and approximate average unit sales in 2004.",
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      "text": "Cost of Land $650k; Cost of Building $650k; Total Cost $1,300k; Est. Average Unit Sales $1,750k; Rent as a % of Sales 9.0%; Franchise Income as % of sales 4.0%; Rental Income $158; Franchise Income 70; Total Income $228; Unlevered Pre Tax ROIC 17.5%",
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      "text": "McDonald's: How the System Works...",
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