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McDonald’s left Russia with millions of dollars worth of food it can’t use

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The fast food company says it will likely have to dump unused inventory in Russia.

The exit from McDonald’s Russia last month, which came after widespread calls for a boycott of brands that were still in the country after the invasion of Ukraine, caused the fast-food company to lose revenue and profits. But not only that: he also made her keep food and other Russian-bought items that she cannot use. 95 million euros from them.

The information was provided by the company itself, in the presentation of quarterly results, quoted by CNN international, which reports that “the departure of McDonald’s from Russia costs a lot of money – and food”.

McDonald’s closures took place in Russia and Ukraine, costing the company around 120 million euros last quarter. Part of that cost relates to the salaries of the company’s workers in Russia, around 62,000, and the rental of space, which the company has continued to support – not least because McDonald’s assumed the shutdown in the country was temporary. The company has not yet given more information on its future plans for the region.

But most of the costs are really related to supplies, especially food: there were 95 million euros of costs in the first quarter, spent on food and other items that you will have to dispose of.

It was the company’s own chief financial officer, Kevin Ozan, who, in a conference call with analysts, said the company’s first-quarter results included 95 million euros “in inventory in the company’s supply chain that are subject to rejection due to the temporary shutdown of restaurants,” the company said in a statement.

According to CNN International, at the end of last year there were 847 McDonald’s restaurants in Russia and 108 in Ukraine, which together accounted for about 9% of the company’s revenue in 2021.

The closure of these restaurants has affected the company’s profits, which fell 28% in the first quarter of this year.

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