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McDonald's To Sell Russian Business; To Take $1.2 Bln-$1.4 Bln In Charges

mcdonalds april29 16may22 lt

McDonald's Corporation (MCD) said on Monday that it will exit Russian market and has started the process for selling its business including entire portfolio of restaurants in the country to a local buyer following ongoing Russian incursion in Ukraine.

The company said: "The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values."

Towards this, the California-based firm expects to record a non-cash charge of around $1.2 billion to $1.4 billion to write off its net investment in the market and recognize significant foreign currency translation losses previously recorded in shareholders' equity.

It also reaffirmed its earlier view of capital expenditure for 2022 to be $2.1 billion to $2.3 billion.

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