McDonald’s Loses More Than IDR 1 Trillion Due to Russia-Ukraine Conflict

Suara.com – Russian military operations that never find peace have shaken the world economy. One of those affected is the fast food franchise company, McDonald’s.

The Russian military move in Ukraine forced McD to close their outlets in a number of countries, causing them to suffer huge losses.

McDonald’s is estimated to cost up to US $ 127 million or Rp. 1.82 trillion. These costs come from employee salaries and inventory maintenance.

In the company’s report in the first quarter of this year, McD spent US$ 27 million to pay rent, salaries of temporarily closed employees and their stock providers. They also lost $100 million from unsold food.

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Compared to 2021, the first quarter of this year McD has lost 28 percent more with total sales reaching US $ 5.7 billion.

However, McDonald’s also reported a profit of US$ 2.28 per share, adjusting for Russian market conditions, they are also trying to find a way out of the tax that is slightly above analyst expectations of $2.17 per share.

The company is still closing their outlets in Russia and it is predicted that McD will suffer more losses if the conflict continues. It is estimated that McDonald’s will have to cost $50 million a month if the war continues.

McD owns 84% ​​of its restaurants in Russia, with the remainder being run by franchisees. McDonald’s also has 108 restaurants in Ukraine, which have been closed since February.

Also Read: Governor Koster Asks Russian Caucasians Who Pose Nude on Eucalyptus Trees to be Deported Immediately

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Source: Suara.com – Berita Terbaru Bisnis, Ekonomi, Investasi Indonesia by www.suara.com.

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