OAK BROOK, Ill., July 7, 2016 /PRNewswire/ -- McDonald's
Corporation today announced strategic charges for the quarter ended
June 30, 2016.
In November 2015, the Company
outlined plans to refranchise 4,000 restaurants by the end of 2018
and a net G&A savings target of $500
million, the vast majority of which is expected to be
realized by the end of 2017. On a recent investor conference
webcast, the Company indicated that it expected to incur strategic
charges in the second quarter related to these initiatives.
Today, McDonald's announced that for the quarter ended
June 30, 2016, the Company expects to
incur approximately $235 million in
pretax charges, or about $0.20 per
share on an after-tax basis, consisting primarily of non-cash
impairment charges related to the Company's refranchising and
G&A initiatives, as well as the relocation of the Company's
headquarters. Going forward, the Company expects to incur
additional strategic charges in connection with these ongoing
initiatives.
Further details regarding these charges for the second quarter
will be provided during the Company's regularly scheduled earnings
conference call later this month.
Upcoming Communications
McDonald's plans to release second quarter results before the
market opens on July 26, 2016 and
will host an investor webcast. This webcast will be broadcast live
and available for replay for a limited time thereafter at
www.investor.mcdonalds.com.
About McDonald's
McDonald's is the world's leading global foodservice retailer
with over 36,000 locations in over 100 countries. More than 80% of
McDonald's restaurants worldwide are owned and operated by
independent local business men and women.
Forward-Looking Statements
This release contains certain forward-looking statements, which
reflect management's expectations regarding future events and
operating performance and speak only as of the date hereof.
These forward-looking statements involve a number of risks and
uncertainties. The factors that could cause actual results to
differ materially from our expectations are detailed in the
Company's filings with the Securities and Exchange Commission, such
as its annual and quarterly reports and current reports on Form
8-K. The Company undertakes no obligation to update such
forward-looking statements, except as may otherwise be required by
law.
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SOURCE McDonald's Corporation