Restaurants

McDonald's sees Russian sales chill amid unrest

As McDonald's discussed another tough quarter with analysts, it singled out the shaky situation in Russia as part of its recent problems.

"We are seeing softness in Russia—I think largely due to some of the geopolitical" concerns and lower consumer confidence, said Don Thompson, McDonald's president and CEO.

Although a recent report from MNI shows Russia consumer sentiment rebounded slightly in June from a record low hit the month before, the index is still sharply year-before levels amid weaker Russia growth and unrest in Crimea.

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McDonald's Europe unit saw comparable sales contract 1 percent last quarter, as the fast-food giant fell short of Wall Street's expectations on Tuesday.

In previous quarters, the country's been a bright spot for the company. During the first quarter, Russia's positive performance helped Europe deliver 1.4 percent comparable sales growth.

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A blow to Russian sales matters since the country hosts some of the company's "most profitable restaurants around the system," said its CFO Peter Bensen to analysts in mid-April.

—CNBC's Katie Little