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McDonald’s exit from Russia is costing the company millions

McDonald’s departure from Russia costs her a lot of money – and food. Related video above: Surprising facts about McDonald’s that you probably did not know The company announced last month that it would temporarily close its restaurants in Russia due to the country’s invasion of Ukraine. It also closed restaurants in Ukraine. The shutdown cost McDonald’s $ 127 million last quarter. McDonald’s said in March it would continue to pay its 62,000 Russian employees despite the closure of operations in the country. CEO Chris Kempczinski added during a conversation with analysts on Thursday that McDonald’s also supports Ukrainian employees: “In both countries we have continued to pay employees and provide additional support.” These staff costs, plus payments for leases and commissions, cost the company $ 27 million. “The other $ 100 million came from food and other items that we need to get rid of.” The results included … $ 100 million cost for the stock in the company’s supply chain, which will likely be rejected due to the temporary closure of the restaurants, “the company said in a statement. The company will provide information on its plans for the area by At the end of the second quarter, Kempczinski said, there were 847 McDonald’s restaurants in Russia at the end of last year, according to an investment document, along with another 108 in Ukraine, accounting for 9% of the company’s revenue in 2021. The closure hit net income McDonald’s fell 28% in the three months to March 31. Elsewhere, McDonald’s sales rose, with restaurant sales worldwide opening at least 13 months, jumping 11.8% on the quarter due to international locations In the United States, sales rose 3.5%, thanks in part to higher prices. where 8%. “Consumers are definitely worried about inflation,” CFO Kevin Ozan said during the call. “They are worried about energy and gas prices.” However, he noted, the fact that groceries are also becoming more expensive was “rather a small benefit”. He added: “We are closely monitoring lower-end consumers just to make sure we are still providing the right value.” Last year, McDonald’s raised prices by about 6%. The company’s marketing of the main menu items and the growth of its digital business, in part thanks to its rewards program, also helped boost sales in the US, McDonald’s said.

McDonald’s departure from Russia costs her a lot of money – and food.

Related Video Above: Unexpected McDonald’s Facts You Probably Didn’t Know

The company announced last month that it would temporarily close its restaurants in Russia due to the country’s invasion of Ukraine. It also closed restaurants in Ukraine. This McDonald’s vacation cost $ 127 million in the last quarter.

McDonald’s said in March it would continue to pay its 62,000 Russian employees despite the closure of operations in the country. “In both countries, we have continued to pay employees and provide additional support,” CEO Chris Kempczinski told analysts during a news conference on Thursday.

These staff costs, plus payments for rent and commissions, cost the company $ 27 million.

The other $ 100 million was from food and other items that we need to get rid of.

“The results included … $ 100 million cost for the stock in the company’s supply chain, which will likely be rejected due to the temporary closure of restaurants,” the company said in a statement.

The company will provide information on its plans for the region by the end of the second quarter, Kempczinski said.

There were 847 McDonald’s restaurants in Russia at the end of last year, according to an investor document. Together with another 108 in Ukraine, they accounted for 9% of the company’s revenue in 2021.

The close hit McDonald’s net income, which fell 28% in the quarter ended March 31.

Otherwise, McDonald’s sales increased.

Worldwide, restaurant sales open for at least 13 months increased by 11.8% in the quarter due to international locations. In the United States, sales increased by 3.5%, in part thanks to higher prices.

In the first quarter, McDonald’s prices rose by about 8%.

“Consumers are definitely worried about inflation,” CFO Kevin Ozan said during the call. “They are worried about energy and gas prices.” But, note the fact that groceries are also becoming more expensive it was “rather a small benefit”. He added that “we are closely monitoring lower-level consumers to make sure we continue to provide the right value.”

Last year, McDonald’s raised prices by about 6%.

The company’s marketing of key menu items and the development of its digital business, in part thanks to it reward programIt also helped boost sales in the United States, McDonald’s said.

McDonald’s exit from Russia is costing the company millions Source link McDonald’s exit from Russia is costing the company millions

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