Here's why American fast-food chains are worried about the conflict in Ukraine

• McDonald's, KFC, and Burger King together have thousands of outlets in Russia.
• The Russia-Ukraine conflict could hurt sales if stores close and sanctions impact operations.

US fast-food chains are bracing for a sales hit as the Russia-Ukraine conflict unfurls.

In commentary published alongside their annual reports this week, the fast-food giants behind Burger King and KFC addressed concerns around the conflict and said that instability in the area could lead to restaurant closures and loss of sales.

Moreover, sanctions from Western nations could make it harder for the companies to do business in Russia or make them a target for retaliation from Putin, they said.

There's a lot at stake for McDonald's, KFC, and Burger King who are among the major global fast-food chains that have over the past decade been growing at a rapid rate in Russia, and where they have thousands of outlets between them.

Previous experience suggests that the chains have reason to be concerned. When the US hit Moscow with sanctions in response to Russia's annexation of Ukraine's Crimea region in 2014, Russian President Vladimir Putin quickly closed a series of McDonald's restaurants in Moscow, citing "sanitary violations."

At the time, critics questioned the motive behind the closures, with some suggesting it was a response to US and European sanctions.

Yum! Brands, which owns KFC, and has more than 1,000 locations in Russia, counts the country as one of its top 10 markets.

In a statement alongside its annual results, released this week, the company said that the Russia-Ukraine conflict could impact "macroeconomic conditions, give rise to regional instability and result in heightened economic sanctions from the US and the international community in a manner that adversely affects us."

US and other government sanctions could also restrict Yum!'s ability to do business with certain suppliers and prevent it moving money in and out of the country, it said. Sanctions announced by the US and Europe this week targeted Russia's financial institutions among other areas.

Burger King owner, American-Canadian Restaurant Brands International, which has around 550 locations in Russia, echoed those sentiments in its own annual report, released on Wednesday.

McDonald's, which, according to Reuters, has around 750 locations in Russia, did not respond to Insider's request for comment.