OAK BROOK, Ill. – McDonald’s Corp. announced the company will incur $235 million, or 20 cents per share on an after-tax basis, in pretax charges for the second quarter ended June 30, 2016.
The company said the non-cash impairment charges were mostly related to refranchising, general and administrative (G&A) initiatives and the relocation of McDonald’s headquarters to downtown Chicago. In November 2015, McDonald’s outlined plans to refranchise 4,000 restaurants by the end of 2018 and a net G&A target of $500 million.
McDonald’s expects to incur additional strategic charges in connection with these ongoing initiatives. Additional details about the company’s second quarter performance will be discussed during an earnings conference call scheduled for July 26.