---
title: "McDonald’s Pullout from Russia Results In $127 Million Loss"
url: https://burnaze.com/article/b8bbb091-67c7-466e-909d-45b29425605b
source: "1851 Franchise"
original_url: https://1851franchise.com/mcdonalds-pullout-from-russia-results-in-127-million-loss-2718587
category: "Restaurants"
industry: "Restaurants"
topics: ["Finance & M&A"]
published: 2022-05-02T21:16:00.000Z
modified: 2026-11-01T02:12:04.019Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/b5802a0bbf6e72d948e06e57e551abc82202.jpg
---

# McDonald’s Pullout from Russia Results In $127 Million Loss

**TL;DR:** McDonald's lost around $127 million due to its pullout from Russia and Ukraine, including $100 million in wasted inventory and $27 million in costs related to employee salaries and lease and supplier payments. The company is losing $55 million per month in sales due to the closing of Russian and Ukrainian restaurants.

*originally published in 1851 Franchise on 2022-05-02. [Read the original](https://1851franchise.com/mcdonalds-pullout-from-russia-results-in-127-million-loss-2718587).*

## Story

In its first-quarter earnings report, McDonald’s revealed it has lost around $100 million in wasted inventory since it shut down restaurants in Russia and Ukraine amid the ongoing conflict.

According to the report, the brand had incurred $27 million of costs related to the continuation of employee salaries and lease and supplier payments, as well as $100 million of costs for inventory in the company's supply chain that likely will be disposed of due to restaurants being temporarily closed.

Kevin Ozan, McDonald’s Chief Financial Officer, estimates that the company is losing $55 million per month in sales due to the closing of Russian and Ukrainian restaurants.

"We certainly don't take this decision lightly, but for us, this is about doing what we think is the right thing to do, both for the global business and for our people locally," Ozan said, per Huffington Post.

Per the McDonald’s quarterly report, sales in other locations helped offset the losses in eastern Europe. Sales at restaurants open at least 13 months climbed 11.8% in the quarter, driven by international locations. In the United States, sales increased by 3.5%, in part because of strategic menu price increases and marketing promotions.

McDonald’s had 847 restaurants in Russia and 108 in Ukraine as 2021 ended. Their combined incomes account for 9% of McDonald’s revenue last year. McDonald's net income fell 28% in three months as of March 31, 2022.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- McDonald's (company)
- Russia (location)
- Ukraine (location)
- russia ukraine conflict (topic)
- inventory loss (topic)
- employee salaries (topic)
- lease payments (topic)
- sales loss (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/mcdonalds-pullout-from-russia-results-in-127-million-loss-2718587). Summarized by Burnaze (https://burnaze.com/article/b8bbb091-67c7-466e-909d-45b29425605b).