McDonald's exit from Russia is costing it a lot of money — and food. 9News
McDonald's said it will likely have to dispose of unused inventory in Russia.McDonald's said in March that it would continue to pay its 62,000 Russian employees, despite shuttering operations in the country.
CEO Chris Kempczinski added during a Thursday call with analysts that McDonald's is supporting Ukrainian employees too: "In both countries, we have continued to pay employees and provide additional support."The other more than $140.8 million was from food and other items it will have to get rid of.McDonald's said in March that it would continue to pay its 62,000 Russian employees, despite shuttering operations in the country.
"Results included ... USD$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 a statement. The company will offer an update on its plans for the region by the end of the second quarter, Mr Kempczinski said.in Russia at the close of last year, according to an investor document.
Together with another 108 in Ukraine, they accounted for nine per cent of the company's revenue in 2021.The closures hit McDonald's net income, which fell 28 per cent in the three months ending on March 31.Globally, sales at restaurants open at least 13 months jumped 11.8 per cent in the quarter, driven by international locations.Aussie mining giant pulls out of Russia
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