McDonald’s Corporation (NYSE:MCD) announced that it would be ending its sponsorship of the Olympic Games.
The two parties had a partnership that lasted 41 years and it was slated to go on for longer, but the fast food giant is cutting ties early. In 2012, McDonald’s had agree to be an Olympic sponsor through 2020, thus covering the PyeongChang Winter games in 2018 and the Summer games in Japan in 2020.
However, the burger chain said that it will re-focus its business priorities, and stepping away from its Olympic sponsorship is an important part of its rebranding efforts, even if it’s three years earlier. McDonald’s will end its connection with the International Olympics Committee, but it will still cover the Olympic Winter Games PyeongChang 2018.
“The financial terms of the separation was agreed by all parties, details of which are confidential,” the IOC said. It is unclear why exactly McDonald’s made the move, but a decline in sales over recent quarters could be a factor that played into the company’s decision to cut back on expenses.
The chain was a “Top Partner,” which means that it shelled out a reported $100 million for each two games it covered during the summer and winter Olympic Games up until 2020, and including that year as well.
MCD stock grew 0.6% Friday.