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.