The fast food company says it will likely have to dispose of unused stocks in Russia.
director From McDonald’s Russia last month, which came after numerous calls to boycott brands that were still in the country after the invasion of Ukraine, caused the fast food company to lose revenue and profits. But not only that: he also made her keep food and other purchased Russian things that she could not use. 95 million euros of them.
The information was provided by the company itself, in the presentation of the quarterly results, reported by CNN International, according to which “McDonald’s departure from Russia costs a lot of money – and food.”
McDonald’s closed in both Russia and Ukraine, costing the company about 120 million euros last quarter. Part of that cost relates to salaries for the company’s workers in Russia, about 62,000, and rents for space, which the company has continued to subsidize — not least because McDonald’s has assumed the shutdown in the country is temporary. The company has not yet provided more information about its future plans in the region.
But the bulk of the costs are really related to supplies, especially food: there were 95 million euros in costs in the first quarter, spent on food and other items that you’ll have to get rid of.
It was the company’s chief financial officer, Kevin Ozan, who said, in a phone call with analysts, that the company’s first-quarter results included 95 million euros “in inventory costs in the company’s supply chain that are likely to be eliminated due to the interim period,” the company said in Statement “Closing Restaurants”.
According to CNN International, at the end of last year, there were 847 McDonald’s restaurants in Russia and 108 in Ukraine, which together accounted for about 9% of the company’s revenue in 2021.
And the impact of the closure of these restaurants on the company’s profits, which fell 28% in the first quarter of this year.
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
