McDonald's, Loses $100 Million, Food and Other Inventory, Russia's Exit, Russia's invasion of Ukraine, Ukraine conflict, $27 million
McDonald's Loses $100 Million in Food and Other Inventory as a result of Russia's Exit
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McDonald’s has stated that it lost $100 million in food and other inventory after closing its Russian outlets due to the Ukraine conflict. McDonald’s joined other Western corporations in closing its stores in Russia due to “unspeakable suffering to innocent people” caused by the conflict. McDonald’s in Russia and Ukraine accounts for about 9% of the company’s total global sales. Nonetheless, the losses are significant.
McDonald’s reported a $127 million revenue loss from exiting Russia in its first-quarter results for 2022, which were released.
“Results included $27 million in costs related to the continuation of employee salaries, lease and supplier payments, as well as $100 million in costs for inventory in the Company’s supply chain that will likely be disposed of due to restaurants temporarily closing,” the company stated in its earnings statement.
In March of this year, McDonald’s announced the temporary closure of 850 of its stores in Russia. It had closed 108 stores in Ukraine as of February.

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Despite the closures, McDonald’s has stated that it will pay full salaries to its employees in both countries, including 62,000 Russians.

Though the company has not specified what the disposed asset consists of, people on social media claim it is mostly food and are outraged that it was wasted.

“How about they donate it to starving Ukrainians?” a Twitter user suggested. “Why can’t they give it to the people of Ukraine who are starving?” asked another.
Russia’s invasion of Ukraine sparked global outrage and a corporate chorus around the world. Many large corporations, including Coca-Cola and Starbucks, have suspended operations in Russia in response to the pressure.

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Several of these businesses, which are symbols of American cultural influence around the world, have faced boycott calls on social media, with investors also questioning their presence.