Boston, MA 08/25/2014 (wallstreetpr) – The Russian Deputy PM Arkady Dvorkovich has made it clear that the country doesn’t have any intentions to ban McDonald’s Corporation (NYSE:MCD). The statement was given after the Russian inspectors visited a number of McDonald restaurants across the country. The news is crucial for McDonald as Russia remains one of the top seven markets of McDonald outside the U.S. and Canada. It has got more than 400 restaurants in Russia.
The inspection
The fast-food chain got cautious as the Ukraine crisis got worse in last few days. The inspection at the various McDonald restaurants In Russia was considered as an impact of the ongoing crisis. The three of McDonald’s Corporation (NYSE:MCD) restaurants are closed in Moscow. The three restaurants also include the first ever opened a restaurant in Russia in 1990. Russia has implemented a one-year ban on various agricultural products that are imported from the U.S., the EU, Australia, Norway and Canada. The step is considered as a form of revenge from the Russian government over European and U.S. sanctions. The inspectors are conducting the inspections at various restaurants located in different Russian regions.
The tough times
McDonald’s Corporation (NYSE:MCD) has remained a top fast food chain in the industry. But the shift in people’s habits from the fast-food to healthier options is creating trouble for McDonald. The competition is coming from the private burger firms like In-N-Out Burger on the West Coast and Five Guys on the East Coast. The consumers appreciate the burger quality of the two firms. Moreover, In-N-Out Burger is successfully selling the burgers at McDonald’s level prices.
The poor sales
McDonald’s Corporation (NYSE:MCD) sales declined 2.5% in the month of July. The food safety issue in China and the industry weakness in the U.S. adversely affected the sales of McDonald. The sales in Asia, Africa and the Middle East declined 7.3% whereas the sales in the U.S. dropped 3.2%.
