McDonald's Announces Second Quarter Strategic Charges
Jul 7, 2016
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.
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.
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.
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.
SOURCE McDonald's Corporation
For further information: Investors: Chris Stent, 630-623-3801, or Media: Terri Hickey, 630-623-5593