WASHINGTON, October 22 (RIA Novosti) - McDonald’s lost 0.92 percent in diluted earnings in the third quarter of 2014 because of temporary store closures in Russia and Ukraine, the company’s statement stated.
“Temporary store closures in Russia and Ukraine,” was one of the several reasons that “negatively impacted diluted earnings per share,” the Tuesday report read.
Overall profits fell nearly 30 percent, according to McDonald’s third quarter results report. Earnings were impacted specifically by three issues which contributed $0.42 to the overall total of diluted earnings of $1.09 per share.
Temporary store closures decreased earnings by $0.01 per share, an estimated $0.15 per share impact was due to impacts of a supplier issue, and $0.26 per share was due to an increase in foreign tax reserves.
McDonald’s specified third quarter earnings would have been comparatively flat relative to last year if not for these negative impacts.
Over 200 safety inspections have been initiated by consumer protection officials against McDonald’s locations in Russia.
Mass audits into McDonald's have been going on in Russia since August. About 10 restaurants have already been shut down, with the company having constantly stated it would appeal the decisions.
The McDonald’s corporation, founded in 1940, is the world’s largest hamburger fast-food chain. Currently, McDonald’s has more than 440 restaurants in 75 Russian regions.