McDonald’s: Announces Second Quarter Charges

Oak Brook / IL. (mdc) McDonald’s Corporation announced strategic charges for the quarter ended June 30, 2016. In November 2015, the Company outlined plans to re-franchise 4’000 restaurants by the end of 2018 and a net G+A savings target of 500 million USD, 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. McDonald’s announced that for the quarter ended June 30, 2016, the Company expects to incur approximately 235 million USD in pre-tax charges, or about 0.20 USD per share on an after-tax basis, consisting primarily of non-cash impairment charges related to the Company’s re-franchising 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 (July 26).