McDonald's Corp MCD:NYSE

Last Price$246.88NYSE Closing Price as of 7:00PM ET 6/30/22

Today's Change-0.86(0.35%)
Bid (Size)$245.52 (2)
Ask (Size)$250.00 (1)
Day Low / High$245.45 - 248.59
Volume2.8 M

McDonald's to Exit Russia, Book Charge Up to $1.4 Billion

11:52AM ET 5/16/2022 MT Newswires
McDonald's (MCD) said Monday it will exit Russia in a move that could cost it as much as $1.4 billion, two months after the fast- food giant temporarily shut down its restaurants there after that country's invasion of Ukraine.

The company will sell its entire portfolio of restaurants in Russia to a local buyer, with plans to retain trademarks. It said continued ownership of the Russian business "is no longer tenable, nor is it consistent with McDonald's values."

McDonald's, which paused operations in Russia early in March, is the latest company that is selling their operations in the country amid global sanctions over the Ukraine war.

"We have a commitment to our global community and must remain steadfast in our values," McDonald's Chief Executive Chris Kempczinski said. "And our commitment to our values means that we can no longer keep the Arches shining there."

McDonald's said the exit will likely result in a $1.2 billion to $1.4 billion charge, with 2022 operating margin expected to fall in the 40% range. Chief Financial Officer Kevin Ozan said on an earning conference call late last month that the company was continuing to target full-year margins in the low to mid-40% range.

McDonald's recorded $127 million of pre-tax operating expenses in the first quarter to support businesses in Russia and Ukraine.

Price: 243.21, Change: -1.83, Percent Change: -0.75