MCD - Restaurant check: McDonalds faces European risk big gains for Arcos Dorados Ruth's Hospitality Potbelly

Bank of America sized up the impact of the attack on Ukraine by Russia on the restaurant sector. Global restaurant operators were noted to face limited exposure to Ukraine and Russia, but a spillover effect to European traffic is considered a bigger risk to the sector. Analyst Sara Senatore observed that due to Russia’s declining economic fortunes over the years, the market represents a very small share of most companies’ total systems that operate there, ranging from 2% of systemwide sales for McDonald (NYSE:MCD) to 0.2% for Starbucks (NASDAQ:SBUX). Licensing also further mitigates the exposure to the region for most of the chains. However, Senatore and team warn that the conflict in Ukraine could threaten to dampen broader European market. "As a share of systemwide sales, Europe accounts for a reported 24% of McDonald’s total, while we believe the region may generate as ~34% of operating profit. At the other

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Restaurant check: McDonalds faces European risk, big gains for Arcos Dorados, Ruth's Hospitality, Potbelly