McDonald’s said it will take $235 million in pretax charges in the second quarter on costs related to moving its corporate headquarters to Chicago and franchising more of its restaurants.
The Oak Brook-based company, which plans to move to the city in spring 2018, did not say in a news release if the figure included costs related to buyouts, which sources say are being offered. A McDonald’s spokeswoman declined to comment.
McDonald’s said it will release more details on the charges when it reports second-quarter earnings later this month, adding that it expects to “incur additional strategic charges in connection with these ongoing initiatives.”
McDonald’s said in November that it aimed to refranchise 4,000 restaurants by the end of 2018. Refranchising lowers the company’s liability because it puts more restaurants under franchisees, who are considered independent business owners. McDonald’s franchisees already operate more than 90 percent of its restaurants, which number 36,000 worldwide.
The burger chain also said late last year that it aimed to save $500 million in general and administrative expenses, most of that by the end of 2017. “General and administrative” is a catchall category that includes costs related to a business’s day-to-day operation, including everything from rent and insurance to some salaries.
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