Burger King files for IPO

BusinessWeek article 12.15.05

Vornado Realty uses derivatives for stake in McDonalds

Wendy's to sell part of Tim Hortons in IPO

Hedge fund pressures Wendy's

• Suffered "finger in the chili" fraud

Checkers Drive-In explores alternatives

AFC Enterprises (Popeye's) to pay $12 special dividend

Lease accounting (2004 - 2005)

• Issues over amortization of leasehold improvements particularly affected the fast food industry
• See Accounting for Leases

McDonald's

Starbucks

Wendy's International Inc

Yum! Brands Inc

Company currently controlled by private equity firms

• Texas Pacific Group, Goldman Sachs, Bain Capital
• $400 million IPO

Underwriters / Advisors

• JP Morgan / Citigroup / Goldman / Morgan Stanley
• Davis Polk / Cleary Gottlieb

SEC filings

• Form S-1  2.16.06

Spinoff by Wendys in response to activist shareholder

• Company website

Underwriters / Advisors

• Goldman Sachs / RBC Capital Markets
• Akin Gump / Sullivan & Cromwell

SEC filings

• Form S-1  12.01.05
• Amendment #1  1.19.06
• Amendment #2  2.14.06

McDonald's spinoff based in Denver CO

• Company website

Underwriters / Advisors

• Morgan Stanley / SG Cowen & Co
• Cleary Gottlieb / Messner & Reeves / Davis Polk

SEC filings

Pershing Square urges spin-off of restaurants

• News item  11.15.05

Vornado Realty takes derivative position in McDonalds

• Disclosed in 3Q 2005 10-Q  11.01.08

• See Investment in McDonalds at note 4 page 12

• Derivatives provide equivalent of a $475.7 mm position

• Represents 1.2% of outstanding common
• Doesn't qualify for hedge accounting
• Effect of investment is recognized as an increase or decrease in "interest and other investment income"

Announced 10.25.00

• Press release

Proxy solicitation

• Definitive proxy statement  6.28.01

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