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McDonald’s left with millions of dollars of Russian food it can’t use
McDonald’s stated in March that it might proceed to pay its 62,000 Russian workers, regardless of shuttering operations within the nation. CEO Chris Kempczinski added throughout a Thursday name with analysts that McDonald’s is supporting Ukrainian workers too: “In each international locations, we have now continued to pay workers and supply extra assist.”
These workers prices, plus funds for leases and provides, price the corporate $27 million.
“Outcomes included … $100 million of prices for stock within the firm’s provide chain that doubtless might be disposed of as a result of eating places being briefly closed,” the corporate stated in an announcement.
There have been 847 McDonald’s eating places in Russia on the shut of final 12 months, in accordance with an investor doc. Along with one other 108 in Ukraine, they accounted for 9% of the corporate’s income in 2021.
The closures hit McDonald’s web revenue, which fell 28% within the three months ending on March 31.
Elsewhere, McDonald’s gross sales grew.
Globally, gross sales at eating places open not less than 13 months jumped 11.8% within the quarter, pushed by worldwide places. In the USA, gross sales popped 3.5%, thanks partially to increased costs. Final 12 months, McDonald’s raised costs by about 6%.