McDonald’s Corp. plans to announce further decisions about its operations in Russia and Ukraine by the end of the second quarter, which would be the end of June, said Christopher J. Kempczinski, president and chief executive officer.
“In both countries, we have continued to pay employees and provide additional support to them and others in need, but it’s clear that this crisis is far from over,” he said in an April 28 earnings call to discuss financial results for the first quarter ended March 31. “With an ever-evolving situation, we are analyzing our options and expect to provide clear direction to investors and other stakeholders no later than the end of the second quarter.”
He later in the call added, “I would tell you that we are being exhaustive. So my guess is that there probably isn’t a scenario that you could come up with on your own that we’re not looking at.”
McDonald’s temporarily suspended operations in Russia and Ukraine at the end of February because of the war in Ukraine. The company in the quarter had $27 million of costs related to the continuation of employee salaries, lease and supplier payments as well as $100 million of costs for inventory in McDonald’s supply chain that likely will be disposed of because of the restaurants closing.
The Russian and Ukrainian markets combined represented about 2% of McDonald’s systemwide sales in 2021, Mr. Kempczinski said. Closing the restaurants had a negligible impact on the company’s overall sales in the first quarter, he said.
McDonald’s net income in the quarter was $1.10 billion, equal to $1.48 per share on the common stock, a 28% decrease from $1.54 billion, or $2.05 per share, in the previous year’s first quarter. Revenues rose 11% to $5.67 billion from $5.12 billion.News Source: Food Business News