PagesBuy Us A Cup of Coffee

March 8, 2022

McDonald's Closes Stores in Russia

If this is being done because it's impossible to operate because of supplies and logistics, it's the right thing to do. If it's being done as a way to put political pressure on the Russian government, it's a huge mistake.

McDonald's to temporally close 850 stores in Russia 

8 comments:

Richard Adams said...

And if it's being done because the pajama boy wants to be a political player on the world stage it's an even bigger mistake. I don't normally watch MCD shares but it will be interesting to see how shareholders react.
.

Anonymous said...

Punishing the Russian people by not letting them eat will have ZERO effect on Putin.
Simply Politically correct PANDERING.

Richard Adams said...

""McDonald’s has been active in Russia and Ukraine for decades. Closing operations temporarily will create headwinds to earnings that could continue for years. Case in point, Russian and Ukrainian stores contributed $300M to operating profits in 2021. Shuttering stores will cost McDonald’s $0.08 per quarter in EPS from the closures alone."
From Seeking Alpha

https://seekingalpha.com/news/3812170-mcdonalds-is-cut-at-northcoast-research-due-to-russia-ukraine-risk?mailingid=26975323&messageid=2900&serial=26975323.16616&utm_campaign=rta-stock-news&utm_content=link-3&utm_medium=email&utm_source=seeking_alpha&utm_term=26975323.16616#comment-91769491

Richard Adams said...

But will those stores ever "reopen"? It would be a great demonstration of Putin's power for those stores to sit empty forever.
.

Anonymous said...

How many of them are franchisee based?

Richard Adams said...

Fifteen percent. Essentially McOpCo.
.

Anonymous said...

Are the owner operators participating in paying staff while closed? Is McD still charging Operators Base Rents??

Anonymous said...

I feel bad for the whole situation

but paying people not to work is
something we do in the USA
doubt they do they in USSR

when our operators & crew were
struggling - NOTHING

will MCD pay for years?

does the payment insure the
employee comes back?

is everyone getting the same piece
of pie? or is it based on hours work?

where on the MCD P&L Will this hit?

come out of service fees?

did I mention our TEAM is hurting
as well? still understand what is
happening - is it the right thing
to do ?????

is STARBUCKS & others doing the
same give away?

giving the money will make CRIS
a hero in RUSSIA - but is he
or does this make good press?

could be years before they open
like RICHARD said / pay for years?