Russia Takes The Fat Out Of Mcdonalds, As Anti-American Retaliation Endorsed By Half The Population | Dances With Bears

By John Helmer, Moscow

It is easier to know what’s inside a McDonald’s hamburger than inside the corporation’s financial accounts. That’s because the type font on the internet version of the corporation’s financial reports is so small, a magnifying-glass is required at the computer screen to decipher the text; even then computer programming by McDonald’s prevents copying the text. But a magnifying-glass cannot uncover the current financial condition of McDonald’s in Russia. Those numbers are entirely hidden, and McDonald’s spokesmen refuse to say what the company’s Russian sales revenues are, and how fast they are falling.

For this reason, it’s not possible to estimate the financial damage the corporation will suffer if the Russian government closes down a large fraction of the McDonald’s outlets currently under investigation by the public health authorities. As for the McDonald’s claim that the trouble the restaurant chain is in Russia risks no more than 1 US cent per share, or $9.8 million, that’s a lie. In the circumstances, a fat lie.

A press release issued by McDonalds from its Illinois headquarters on October 21 reported “a significant decline” in worldwide revenues for the third quarter, as well as falls in operating income, bottom-line profit, and earnings per share. This is how the press release tabulated the decline globally for the corporation:

Without giving precise figures, McDonald’s says its third-quarter comparable sales in Europe declined 1.4%, and its operating income in Europe decreased 2% . The company admits that “consumer confidence and other issues related to the operating environment in Russia and Ukraine and ongoing weakness in Germany negatively impacted the segment’s quarterly results”.

Complete story at - Russia Takes The Fat Out Of Mcdonalds, As Anti-American Retaliation Endorsed By Half The Population | Dances With Bears

Russian Politician Demands Banning McDonalds After Fast Food Chain Halts Crimea Operations | Zero Hedge

Joking aside, Russia was not only quick to see through the real reason for the shutdown, but did what it has done all along in the relentless Tit-for-Tat when it comes to the future of Ukraine: it re-escalate.

From Telegraph:

The fast food chain became embroiled in the fall out of the worst diplomatic crisis in years when it closed its three Crimean chains.

McDonald’s announced the temporary closure of its outlets in Simferopol, Yalta and Sevastopol, due to what the company called “operation reasons beyond McDonald’s control.”

The company offered its Crimean staff jobs at any other outlet in mainland Ukraine and has promised to reopen the restaurants as soon as possible. But as far as some of the more hawkish elements in Moscow are concerned, the damage has been done.

“McDonalds closed their outlets in Crimea. Very well. We’ll close the rest. I’ve given instructions to all city divisions of the Liberal Democratic Party to hold pickets at every McDonalds,” Mr Zhirinovsky said on Friday.

“It’s muck, why poison our citizens,” Mr Zhirinovsky added in the outburst.

Well... he is right, as "court jesters" usually are.

While Mr Zhirinovsky is widely viewed as the court jester of Russian politics, his trademark outbursts are occasionally used as trial balloons for schemes that do eventually become policy.

If this is one of those cases, other iconic American food brands may also have to watch out.

Mr Zhirinovsky suggested that after closing every McDonald’s restaurant in the country, he would move on down a hit list of brands.

Complete story at - Russian Politician Demands Banning McDonalds After Fast Food Chain Halts Crimea Operations | Zero Hedge