McDonald's sees revenue drop during war in Ukraine as sales rise amid higher prices

McDonald's sees revenue drop during war in Ukraine as sales rise amid higher prices

In its second-quarter earnings report released on Tuesday, McDonald's admitted that its revenue fell 3% in the last quarter due to the war in Ukraine and subsequent restaurant closures in Russia. At the same time, McDonald's saw its global sales increase by almost 10%.

McDonald's saw a 3% decline in sales to around $5.72 billion due to the devaluation of the euro and other international currencies and the closure of its Russian sites. The company also pointed to inflationary pressures on labor and raw materials, which weighed on margins in the second quarter.

But McDonald's chairman and chief executive Chris Kempczinski hailed the second-quarter results as evidence of the company's "strength and resilience" in difficult global conditions. He acknowledged circumstances may not change anytime soon, but remains confident McDonald's is heading in the right direction.

"While we anticipate a wide range of scenarios, I am confident that our plans and our people will enable McDonald's to weather this environment better than others," Kempczinski said in a statement.

The war in Ukraine has taken its toll on McDonald's. About a week after the war began in February, McDonald's announced it would begin closing its more than 800 stores across Russia. In May, the company announced that it would leave Russia and sell its business there to another investor. The company said second-quarter profits fell nearly in half to $1.19 billion, or $1.60 a share, due to a charge following the sale of its Russian business.

Dying Light 2: Where to find Artifact WeaponsAt the same time, global McDonald's restaurant sales were positive. Overall, the company reported comparable store sales growth of 9.7%. Sales increased 3.7% in the United States and 13% internationally.

Related news
Australian commodity prices rose at the close of trading. The S&P/ASX 200 was up 0.06%.
Australian commodity prices rose at the close of trading. The S&P/ASX 200 was up 0.06%.
Australian stocks rallied after Tuesday's close on gains in consumer electronics, consumer goods and healthcare.
Airbus and Qatar are engaged in a debate on cross-border legal powers
Airbus and Qatar are engaged in a debate on cross-border legal powers
LONDON, July 15 (Reuters) - Airbus (AIR.PA) and Qatar Airways quarreled in a London court on Friday over French restrictions on transferring evidence overseas, when a high-profile fight over aircraft safety became involved. in a delicate political debate on cross-border jurisdiction.
In September, consumer inflation expectations fell and sentiment rose.
In September, consumer inflation expectations fell and sentiment rose.
consumers' near-term inflation expectations fell to a one-year low in September and the outlook over the next five years also improved, easing fears that the Federal Reserve could raise interest rates by a full percentage point next week
Is the United States in a recession?
Is the United States in a recession?
Is the United States in a recession? Or is the economy all rolled into one? It almost doesn't matter.
Renault sales fell 30% in the first half after the withdrawal from Russia
Renault sales fell 30% in the first half after the withdrawal from Russia
French automaker Renault (EPA:RENA) says car sales fell 30% in the first half of 2022 after car sales in Russia, one of the top Western carmakers, suffered a major drop in business in Ukraine, fell in the first half of 2022. War .