McDonald’s reports $127 mln expenses due to suspension of work in Russia, Ukraine

McDonald's announced that its expenses following the suspension of operations in Russia and Ukraine amounted to $127 million. This is according to the company's report for the first quarter of 2022.

"Results for 2022 included the following: $127 million, or $0.13 per share, of pre-tax operating expenses incurred to support the Company's businesses in Russia and Ukraine. Included in this amount were $27 million related to the continuation of employee salaries, lease and supplier payments as well as $100 million for inventory in the Company's supply chain that likely will be disposed of due to restaurants being temporarily closed," the company said.

Earlier McDonald's 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. The fast food chain ceased operations in Ukraine on February 24, in Russia on March 14.

The report does not provide forecasts for the timing of the resumption of work in these two countries. As Chris Kempczinski, President of the corporation noted, McDonald's management regularly analyzes the situation and hopes to provide shareholders with an assessment of the prospects for work no later than the end of the next quarter (June 2022).

In general, McDonald's showed more positive results than expected by experts. Total revenue for the quarter increased by 11% to $5.66 billion. Shares of the corporation on the New York Stock Exchange on Thursday are growing by more than 3%.