McDonald’s Revealed After Closing Stores in Russia the Company Will Lose USD 50M Per Month

Mar 11, 2022 By MarketDepth

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McDonald’s (NYSE: MCD) revealed that upon its Russian shutdown, the company will lose about USD50 Million per month until it eventually reopens those restaurants. The fast food chain has temporarily closed 850 locations across the country. Nevertheless, it will continue to pay its 62,000 workers in Russia and run its Ronald McDonald House of Charities.

“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 at wrote in a note to clients on Thursday

A corporate filing revealed that McDonald’s in both Ukraine and Russia accounted for 9% of its 2021 revenue, as the majority are directly owned and operated by the company. Following pressure from critics and a request from a high level investor, the company made the announcement of said closure in a letter to franchisees and employees.

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


However, in a turn of events, a report from TASS, Russia’s largest and most prominent state-owned news agency, disclosed that the country’s Ministry of Economic Development is contemplating whether or not to lift restrictions on the use of trademarks and patented brands for companies that have boycotted Russia. 

“The measure will allow, on the one hand, to organize the production and use of technologies that were presented in products that were deprived [by] Western companies [to] our citizens,” the report said in an excerpt translated from Russian.