McDonald’s revenue is booming, offsetting problems in China and Russia

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U.S. menu prices and the easing of COVID-19 restrictions elsewhere helped McDonald’s offset struggling markets such as China and Russia in the first quarter. According to analysts polled by FactSet, its revenue for the January-March period rose 11% to $5.66 billion, beating the exceeded Wall Street estimate of $5.57 billion. The Chicago burger giant announced in early March that it would temporarily close 850 branches in Russia as it continues to pay its 62,000 employees in the country. The company also closed 108 restaurants in Ukraine in February and paid employees.

McDonald’s said sales increased as COVID restrictions eased in many markets, including the UK, France and Brazil. In the United States, same-store sales increased by 3.5%. China saw negative same-store sales as it battled the resurgence of COVID and new regulations. Shares of McDonald’s rose ahead of the opening bell on Thursday.

McDonald’s expects to lose $50 million in sales every month just by closing its stores in Russia. McDonald’s spent $27 million on salaries, leases and supplier payments in Russia and Ukraine during the quarter. The company also said it had $100 million in inventory and was likely to get rid of it when the restaurant closed. Excluding costs in Russia and Ukraine, and other one-time items, McDonald’s earned $2.28 per share in the quarter, versus analysts’ expectations of $2.17 per share that were well exceeded. Global same-store sales, or sales from stores open for at least a year, increased nearly 12% in the quarter.

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  • McDonald’s revenue is booming, offsetting problems in China and Russia
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