OAK BROOK, Ill. – McDonald’s Corp. said it expects to incur approximately $130 million in pre-tax charges, equal to about 12 cents per share on an after-tax basis, in the third quarter ended Sept. 30.
The burger chain said the charges consist of restructuring and non-cash impairment charges related to its global G&A and refranchising initiatives that were outlined in November 2015. Plans include refranchising 4,000 restaurants by the end of 2018 and a net general and administrative savings target of $500 million, the vast majority of which is expected to be realized by the end of 2017, McDonald’s said.
Additional strategic charges related to the initiatives are expected going forward, the company added.
McDonald’s is expected to provide further details on the charges as well as an update on refranchising activities during its regularly scheduled earnings conference call later this month.