McDonald’s to reopen restaurants in Ukraine after Russia’s war

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McDonald’s ($NYSE:MCD) is set to reopen its restaurants in Ukraine in the coming months, after Russia’s war led to closures. The burger chain closed its Ukrainian restaurants after Russia’s invasion nearly six months ago, but has continued to pay more than 10,000 McDonald’s employees in the country. It is not yet clear how this will affect McDonald’s market and earnings in the long term.

Market Reaction

This news caused the company’s stock to open at $263.2 and close at $259.3.

VI Analysis

According to the VI Star Chart, McDonald’s is strong in dividend, profitability, and medium in asset, growth. McDonald’s has a high health score of 8/10 considering its cashflows and debt, is capable to safely ride out any crisis without the risk of bankruptcy. McDonald’s is classified as ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. High growth companies are deemed more risky as they attempt to grow faster.