In its second-quarter earnings report on Tuesday, McDonald’s acknowledged that its revenue has declined by 3% in the last quarter due to the war in Ukraine and the restaurant closures that followed in Russia. At the same time, McDonald’s posted a nearly 10% increase in its global sales.

McDonald's reported a 3% drop in revenue to about $5.72 billion due to the depreciation of the Euro and other international currencies and the closure of its Russian locations. The company also pointed to inflationary pressures on labor and commodities that negatively impacted margins in the second quarter.

But Chris Kempczinski, McDonald's President and CEO, hailed the second quarter results as a testament to the company's "strength and resiliency" amid difficult global conditions. He acknowledged that these circumstances may not change soon, but maintained confidence that McDonald's was going in the right direction.

"While we are planning for a wide range of scenarios, I am confident that our plans and people position McDonald's to weather this environment better than others," said Kempczinski in a statement.

The war in Ukraine has taken its toll on McDonald’s. About a week after the war began in February, McDonald’s announced that it would begin closing its over 800 locations across Russia. In May, the company said it would exit Russia and sell off its business there to another investor.

The company said its income fell by nearly half to $1.19 billion, or $1.60 a share, during the second quarter over a charge that followed the sale of its Russian businesses.

At the same time, global sales at McDonald’s restaurants have been positive. Altogether, the company experienced a 9.7% growth in same-store sales. Sales were up 3.7% in the U.S. and 13% internationally.

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