American companies have been putting the screws to Russia ever since they invaded Ukraine, and it has undoubtedly been felt over there and here.
Take Netflix, for instance. One part of the reason they are in a financial free-fall and have become the laughingstock of Hollywood is their huge dip in subscriber numbers. They reported 200,000 fewer subscribers in the previous quarter, part of which can be attributed to the fact that they banned Russians from the app. Now, as for the 2 million fewer subscribers they anticipate to have next quarter? They won’t have the Russia excuse to use twice.
McDonald’s shut down service throughout Russia in March, and the move has cost them nine figures. Why? Because despite shuttering the doors of the Golden Arches, they continued to pay all 62,000 employees. CEO Chris Kempczinski said in their recent earnings call that they will also support all of their Ukrainian employees too.
Paying all the employees in both countries will cost the company $27 million, and they will take an additional $100 million hit on food and other items they have to dispose of.
The 847 McDonald’s locations in Russia and 108 in Ukraine combine for 9% of the company’s revenue in 2021, so this is a big deal for Mickey D’s. Company revenue was down 28% in the quarter ending March 31.
The post Arch Madness. McDonald’s Paying Steep Financial Price For Punishing Russia. appeared first on VTPost.com.
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