McDonald's says restaurant closures in Russia will cost the chain $50 million a month

• McDonald's estimates that its store closures in Russia will cost the company $50 million per month.
• The fast-food giant is continuing to pay the wages of its 62,000 workers in Russia.

McDonald's said its restaurant closures in Russia will cost the company millions of dollars.

Speaking at a UBS consumer and retail conference on Wednesday, and reported by CNBC, CFO Kevin Ozan said that while McDonald's is still evaluating the full impact on the business, it estimates that the closure of its nearly 850 restaurants in Russia will cost the chain around $50 million per month.

The fast-food giant had come under intense pressure to act in response to Moscow's decision to invade Ukraine, and announced Tuesday that it would temporarily close doors in Russia. Some of its leading competitors in the food and beverage space, including Yum Brands-owned KFC, followed suit shortly after.

McDonald's has promised to continue paying the wages of the 62,000 workers it employs in Russia while its stores remain shuttered. Ozan also said at the UBS conference that the company will continue to pay the leases for its shuttered stores, along with other supply chain costs, per CNBC.

"We expect this to be temporary and we certainly don't take this decision lightly, but for us this is about doing what we think is the right thing to do, both for the global business and for our people locally," he said.

McDonald's did not immediately reply to a request for comment from Insider made outside normal US operating hours.

While most of the other US food chains in Russia are run by franchisees, McDonald's owns and operates the majority of its 847 restaurants there. The company said that its business in Russia and Ukraine accounts for around 9% of the company's worldwide revenue.

More global brands are choosing to exit Russia as the conflict in Ukraine intensifies. However, several are resisting, despite boycott threats from customers.