McDonald's takes $60 million in pre-tax charges

McDonald's takes $60 million in pre-tax charges
Tags: Burger/Steak/BBQ, Chicken, Drive-thru, International, Legal Issues, Trends / Statistics
February 27, 2006

CHICAGO — An acquisition in Brazil and store closings in the United Kingdom will lead McDonald's Corp. to take about $60 million in pre-tax charges in the first quarter, the QSR operator reported on Feb. 27.

In a filing with the Securities and Exchange Commission, McDonald's said it reached an agreement to acquire restaurants "operated by several litigating franchisees" in Brazil and expects to incur pretax charges of approximately $20 million as a result.

In the U.K. meanwhile, the company plans to shutter some 25 outlets in the first quarter, for lease cancellation and other charges of roughly $40 million.