McDonald’s left with tens of millions of {dollars} of Russian meals it may’t use

The corporate introduced final month that it could briefly shut its eating places in Russia due to the nation’s invasion of Ukraine. It additionally closed eating places in Ukraine. These shutdowns price McDonald’s $127 million final quarter.

McDonald’s stated in March that it could 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 nations, we’ve continued to pay workers and supply extra help.”

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 will likely be disposed of as a consequence of eating places being briefly closed,” the corporate stated in a press release.

There have been 847 McDonald’s eating places in Russia on the shut of final 12 months, in response to 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 earnings, which fell 28% within the three months ending on March 31.

Elsewhere, McDonald’s gross sales grew.

Globally, gross sales at eating places open no less than 13 months jumped 11.8% within the quarter, pushed by worldwide places. In the US, gross sales popped 3.5%, thanks partially to increased costs. Final 12 months, McDonald’s raised costs by about 6%.

The corporate’s advertising and marketing of core menu objects and progress in its digital enterprise, thanks partially to its rewards program, additionally contributed to the expansion in US gross sales, McDonald’s stated.

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