McDonald’s (NYSE: MCD) has finally revealed its plans to exit the Russian market. The fast-food chain, which stopped operating its restaurants in the nation on March 8, 2022, has served the country for more than 30 years.
The company is looking for a prospective buyer for its Russian business. It said that the buyer will not be able to use McDonald’s name, logo, branding, and menu. However, it will retain its trademark in Russia and continue to pay its 62,000 Russian employees until the business is sold.
McDonald’s also announced that it expects to record a “non-cash charge of about $1.2 billion-1.4 billion to write off net investment in the market and recognize significant foreign currency translation losses previously recorded in shareholders’ equity.”
Wall Street’s Take
Last week, Atlantic Equities analyst Edward Lewis maintained a Hold rating on McDonald’s and lowered the price target to $245 from $263. The new price target implies marginal downside potential from current levels.
Overall, the stock has a Strong Buy consensus rating based on 22 Buys and six Holds. MCD’s average price target of $281 implies 14.7% upside potential. Shares have gained 8.1% over the past year.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into MCD’s performance.
According to the tool, mcdonalds.com recorded a 3% monthly increase in global visits in April, compared to March. Likewise, the footfall on the company’s website has grown 259% year-to-date against the same period last year.
It is unlikely to be easy for McDonald’s to sell its entire business in Russia. Thus, investors may want to wait for some positive news on this front.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.