McDonald’s is selling its Russian operations. His stock barely moves.
withdraws from Russia some 30 years after entering the country.
The fast-food giant will sell its business to a local buyer who won’t be able to use the name or logo. McDonald’s (ticker: MCD) concluded its position there was untenable after Russia invaded Ukraine earlier this year, sparking a humanitarian crisis, the company said in a statement on Monday.
McDonald’s, which began closing restaurants in March, will try to ensure employees in Russia are paid until any deals close. He expects a charge of $1.2 billion to $1.4 billion, writing off net investment and recognizing foreign exchange losses.
McDonald’s updated its guidance for 2022, saying the charge means its adjusted operating margin will be in the “average 40%” range.
“We have a commitment to our global community and must stay true to our values,” said chief executive Chris Kempczinski. “And our commitment to our values means that we can no longer make the Arches shine there.”
The stock fell slightly to $245 in premarket trading on Monday.
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