McDonald’s (NYSE:MCD) stock is slipping on Monday after the fast-food chain announced plans to sell its Russian restaurants.
Let’s dive into everything investors need to know about the company’s plans to exit Russia.
- McDonald’s says that it’s looking to sell off its Russian business after over 30 years in the country.
- This comes after the company closed down its Russian restaurants in March.
- That was its reaction to Russia initiating war with Ukraine.
- McDonald’s is seeking out a local buyer that can take over the business in the country.
- It will also be acting to remove any symbols in the restaurants tying them back to the chain.
- This will result in them no longer using the company’s name, logo, branding, or menu.
- It’s also worth noting that it will keep paying employees until a sale is final.
- In addition to that, MCD is seeking continued employment of those workers as part of the deal.
- McDonald’s is also expecting to suffer a primarily non-cash charge between $1.2 billion to 1.4 billion as its write-off of business in Russia.
- This also has it expecting an operating margin in the 40% range for 2022.
- Its 2022 outlook also includes capital expenditures ranging from $2.1 billion to $2.3 billion.
Chris Kempczinski, president and CEO of McDonald’s, said the following about the company leaving Russia.
“However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”
MCD stock is down 1.3% as of Monday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.