McDonald’s Closing Its Stores In Russia Will Cost $50M A Month – Report

McDonald’s Closing Its Stores In Russia will Cost $50M A Month

As more and more sanctions are imposed on Russia for its invasion of Ukraine, the cost of inflation and basic goods around the world also increases.

According to AOL.COM, the latest decision by fast-food franchise McDonald’s to close all of its 850 stores in Russia will cost a whopping penny.

While the company will continue paying its 62,000 employees in Russia and operate its Ronald McDonald House Charities, the costs will continue to pile up to an enormous $50 million a month.

“As the company anticipates paying wages for its staffers during the closures and other costs associated with the disruption, management indicated this could represent a ~$50mn P&L hit per month, or ~5c-6c/share,” MKM Partners Analyst Brett Levy said.

Russia and Ukraine count for 9% of the franchise’s revenue. McDonald’s CEO Chris Kempczinski shared a statement following the decision,

“Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,” Kempczinski said.

“Years ago, when confronted with his own difficult decision, Fred Turner explained his approach quite simply: ‘Do the right thing.’ That philosophy is enshrined as one of our five guiding values, and there are countless examples over the years of McDonald’s Corporation living up to Fred’s simple ideal. Today, is also one of those days.”