McDonald's Loses $100 Million In Food, Other Inventory After Russia Exit
NDTV
Despite closing the stores, McDonalds said it will pay full salaries to its employees in both countries, 62,000 of which are Russian.
McDonald's has said that it lost $100 million in food and other inventory after it closed down its outlets in Russia due to the Ukraine war. McDonald's joined other western companies in closing down its stores in Russia due to the conflict's "unspeakable suffering to innocent people".
Out of the company's total global sales, McDonald's in Russia and Ukraine make up about nine per cent. Still, the losses are substantial.
In its first quarter results for 2022 announced on April 28, McDonald's said it lost $127 million in revenue just from exiting Russia. “Results included $27 million of costs related to the continuation of employee salaries, lease and supplier payments, as well as $100 million of costs for inventory in the Company's supply chain that likely will be disposed of due to restaurants being temporarily closed,” the company said in the earnings statement.
McDonald's announced in March this year that it would be temporarily closing 850 of its stores in Russia. In February, it had closed 108 stores in Ukraine.
