{"id":1457751,"date":"2022-04-29T08:29:39","date_gmt":"2022-04-29T12:29:39","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1457751"},"modified":"2022-04-29T08:29:42","modified_gmt":"2022-04-29T12:29:42","slug":"closing-in-russia-cost-mcdonalds-127-million-in-q1","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/closing-in-russia-cost-mcdonalds-127-million-in-q1\/","title":{"rendered":"Closing in Russia Cost McDonalds $127 Million in Q1"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fclosing-in-russia-cost-mcdonalds-127-million-in-q1%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1457751&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"group\">\n<p>Two months after the fall of the Berlin Wall in 1989, <a href=\"https:\/\/www.cnbc.com\/quotes\/MCD\" target=\"_blank\" rel=\"noopener\">McDonald&#8217;s<\/a> \u2014 the very symbol of Western capitalism \u2014 opened its first store in the Soviet Union. It was a big moment, and the restaurant drew large crowds.<\/p>\n<p>More than 30 years later, amid pressure from U.S. consumers to protest Russia&#8217;s invasion of Ukraine, <a href=\"https:\/\/www.cnbc.com\/2022\/03\/08\/mcdonalds-will-temporarily-close-850-restaurants-in-russia-nearly-2-weeks-after-putin-invaded-ukraine.html\">McDonald&#8217;s last month announced<\/a> it would be temporarily closing all 850 of its locations in Russia.<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/quotes\/SBUX\" target=\"_blank\" rel=\"noopener\">Starbucks<\/a>, <a href=\"https:\/\/www.cnbc.com\/quotes\/PEP\" target=\"_blank\" rel=\"noopener\">PepsiCo<\/a> and <a href=\"https:\/\/www.cnbc.com\/quotes\/KO\" target=\"_blank\" rel=\"noopener\">Coca-Cola<\/a> likewise announced their plans to <a href=\"https:\/\/www.cnbc.com\/2022\/03\/08\/coca-cola-follows-mcdonalds-starbucks-in-suspending-business-in-russia.html\">pause business activity in Russia<\/a>, and <a href=\"https:\/\/www.cnbc.com\/quotes\/YUM\" target=\"_blank\" rel=\"noopener\">Yum Brands<\/a>, which franchises about 1,000 KFC restaurants and 50 Pizza Hut locations in Russia, <a href=\"https:\/\/www.yum.com\/wps\/portal\/yumbrands\/Yumbrands\/news\/press-releases\/yum+brands+pausing+investment+and+development+in+russia+redirecting+profit+to+humanitarian+efforts\" target=\"_blank\" rel=\"noopener\">suspended all investment and restaurant development in the country<\/a>.\u00a0<\/p>\n<p>More than <a href=\"https:\/\/som.yale.edu\/story\/2022\/over-750-companies-have-curtailed-operations-russia-some-remain\" target=\"_blank\" rel=\"noopener\">750 companies have since curtailed operations<\/a> in Russia.<\/p>\n<p>McDonald&#8217;s has also temporarily shuttered its 108 locations in Ukraine for safety reasons. <a href=\"https:\/\/corporate.mcdonalds.com\/content\/dam\/gwscorp\/assets\/investors\/financial-information\/Supplemental-Information\/Russia%20and%20Ukraine%20Supplemental%20Schedule.pdf\" target=\"_blank\" rel=\"noopener\">Russia and Ukraine together<\/a> account for roughly 2% of McDonald&#8217;s global sales and less than 3% of its operating income.<\/p>\n<p>There&#8217;s no telling when or if McDonald&#8217;s will resume its operations in Russia and Ukraine, but the company is taking a hit to its bottom line. The company announced during its <a href=\"https:\/\/www.cnbc.com\/2022\/04\/28\/mcdonalds-mcd-q1-2022-earnings.html\">first-quarter earnings<\/a> that the closures cost McDonald&#8217;s $27 million in leases, supplier costs, and employee wages, and another $100 million in unsold inventory. Altogether, those expenses dragged its earnings down by 13 cents per share in the first quarter.<\/p>\n<p>In the meantime, the fast-food chain has committed to continue paying its employees in both countries.<\/p>\n<p><strong>Watch the video to learn more about the impact of McDonald&#8217;s leaving Russia.<\/strong><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"denied:data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMTgiIGhlaWdodD0iMTgiIHZpZXdCb3g9IjAgMCAxOCAxOCIgZmlsbD0ibm9uZSIgeG1sbnM9Imh0dHA6Ly93d3cudzMub3JnLzIwMDAvc3ZnIj4KPHBhdGggZD0iTTYuOTU5OTYgNi4xMjAwM0wxMS43NiA5LjAwMDAzTDYuOTU5OTYgMTEuODhWNi4xMjAwM1oiIGZpbGw9IndoaXRlIi8+CjxwYXRoIGZpbGwtcnVsZT0iZXZlbm9kZCIgY2xpcC1ydWxlPSJldmVub2RkIiBkPSJNOC41NiAwLjQ0MDAwMkMzLjgzMjQ0IDAuNDQwMDAyIDAgNC4yNzI0NSAwIDlDMCAxMy43Mjc2IDMuODMyNDQgMTcuNTYgOC41NiAxNy41NkMxMy4yODc2IDE3LjU2IDE3LjEyIDEzLjcyNzYgMTcuMTIgOUMxNy4xMiA0LjI3MjQ1IDEzLjI4NzYgMC40NDAwMDIgOC41NiAwLjQ0MDAwMlpNMS4xMiA5QzEuMTIgNC44OTEgNC40NTEgMS41NiA4LjU2IDEuNTZDMTIuNjY5IDEuNTYgMTYgNC44OTEgMTYgOUMxNiAxMy4xMDkgMTIuNjY5IDE2LjQ0IDguNTYgMTYuNDRDNC40NTEgMTYuNDQgMS4xMiAxMy4xMDkgMS4xMiA5WiIgZmlsbD0id2hpdGUiLz4KPC9zdmc+Cg==\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Two months after the fall of the Berlin Wall in 1989, McDonald&#8217;s \u2014 the very symbol of Western capitalism \u2014 opened its first store in the<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1457751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1457751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1457751"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1457751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1457751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1457751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1457751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}