McDonald’s announced that its expenses after the suspension of operations in Russia and Ukraine amounted to $60 million dollars, as indicated in the company’s report for the first quarter of 2022, published this Thursday.
“The results of
included the following: $127 million, or $0.13 per share, of operating expenses before taxes incurred to support the Company’s business in Russia and Ukraine. Included in this amount was $27 million related to continuing employee wages, lease and payments to suppliers, as well as $60 million for inventory in the Company’s supply chain that will likely be eliminated due to the temporary closure of restaurants,” the company said.
McDonald’s previously forecast that it would lose about $50 million a month as a result of leaving Russia, but without taking into account the consequences of the closure of restaurants in Ukraine.
It should be remembered that the fast food chain ceased operations in Ukraine on 24 February, in Russia on 24 March.
The report does not provide forecasts on the timing of the resumption of work in these two countries. As Chris Kempczinski, president of the corporation, noted, McDonald’s management regularly reviews the situation and expects to provide stockholders with an assessment of job prospects no later than the end of the next quarter (June 2022).
Usually, McDonald’s showed more positive results than expected by experts. Total revenue for the quarter increased by 11 % to $5,660 millions of dollars. The corporation’s shares on the New York Stock Exchange on Thursday are growing more than 3%.
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