McDonald’s announced its quarterly results on April 28.
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.
Despite closing the stores, McDonald’s said it will pay full salaries to its employees in both countries, 62,000 of which are Russian.
Though the company hasn’t specified what the disposed inventory consists of, people on social media say it largely consists of food and are expressing their anger for wasting it.
“How about they donate it to starving Ukrainians?” a user said on Twitter. “Why can’t they give it to the Ukraine people that are desperate for food,” added another.
Russia’s invasion of Ukraine led to global outrage and international corporate chorus. Bowing to the pressure, many big companies – like Coca-Cola and Starbucks – suspended their operations in Russia.
Several of these companies, symbols of American cultural influence in the world, had faced boycott calls on social media with investors also asking questions about their presence.
