McDonald's announces exit from Russia, expects to book charges of $1.2B to $1.4B

May 16, 2022 6:50 AM ETMcDonald's Corporation (MCD)By: Niloofer Shaikh, SA News Editor37 Comments

Close-up McDonalds outdoor sign against blue sky

ermingut/iStock Unreleased via Getty Images

After serving for more than 30 years, McDonald's Corporation (NYSE:MCD) plans to exit the Russian market.

The fast food giant has initiated a process to sell its entire portfolio of Russian business to a local buyer following its announcement on March 8, 2022 to temporarily close restaurants in Russia and pause operations in the market after Ukraine's invasion.

FY2022 Outlook Update: The company expects to book a charge of approximately $1.2B-1.4B to write off its net investment in the market and recognize significant foreign currency translation losses previously recorded in shareholders' equity; Expects operating margin to be in the 40% range as a result of the charge for Russia and adjusted operating margin to be in the mid-40% range; Net restaurant unit expansion will contribute about 1.5% to 2022 Systemwide sales growth in constant currencies; over 1,300 net restaurant additions in 2022; Capital expenditures to be approximately $2.1B to $2.3B.

Also read: Solid Business Regardless Of Russian Exposure

Recommended For You

Comments (37)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.