after Moscow invasion of Ukraine, many international Brands and food chains wrapped up their business in Russia in a show of symbiosis McDonald’s said Monday it has started the process of sell it business in Russia Post Code of growing country isolation over its war in Ukraine.
The company that includes 850 restaurants in Russia, which employs 62,000 people, pointed out the humanitarian crisis caused From the war saying hold on to her business in Russia is “no longer defensible, nor is it consistent.” with McDonald’s ratings.
Based in Chicago fast Food giant said in In early March, it was temporarily closed stores in Russia, but will continue to pay the salaries of its employees. McDonald’s said on Monday it would seek not to name a potential Russian buyer one To hire its workers and pay their salaries until the sale closes.
“Dedication and loyalty to McDonald’s,” CEO Chris Kempinski said. of employees and hundreds of Russian suppliers made Difficult decision Leaves.
“However, we have our obligation global community and must remain steadfast in rate us ” in The phrase, “And our commitment to our values means we can no longer keep the arches sparkling out there.”
McDonald’s said it was trying to sell its restaurants plans to start Remove golden arches, symbols and other signs with The Company’s name. She will keep her trademarks in Russia.
Western companies are struggling with rid itself of Russia, and bear hit to their net profit from pauses or closures in The face of Penalties. others left in Russia at least in part, with Some facing Rebound.
French carmaker Renault said on Monday it would sell its majority stake in Russian car AvtoVAZ Company and Factory in Moscow State – first great nationalization of Foreigner business since the start of the war.
For McDonald’s, the file first restaurant in Russia opened in the middle of Moscow more Three decades ago, shortly after the fall of Berlin Wall. she was powerful Code of mitigation of Cold War tensions between the United States and the Soviet Union, which will collapse in 1991.
Now, the company’s exit is proving to be symbolic of a new Analysts say. “Her departure represents a new isolationism in Russia, which must now look inward for Investment and consumer brand development, said Neil Saunders, Director of director of GlobalData, a corporate analytics company.
He said that McDonald’s has more than others of his restaurants in Russia, but because it won’t license its brand, sell price It probably won’t be close to the value of The business before invasion. Russia and Ukraine together accounted for for about 9% of McDonald’s revenue and 3% of operating Saunders said before the war.
McDonald’s said they expect it record shipping against earnings of Between $1.2 billion and $1.4 billion over leave Russia.
his restaurants in Ukraine is closed, but the company said it continues to pay full payroll for Its staff is there.
McDonald’s more from 39,000 locations er more from 100 countries. Most are owned by franchisees – only about 5% are owned and operated by the company.
McDonald’s said an exit from Russia would not change its outlook of adding net 1300 restaurants this yearwhich will contribute about 1.5% to company-wide sales growth.
Last month, McDonald’s reported that earned $1.1 billion in The first quarter down from more From 1.5 billion dollars a year Previously. Revenue was approximately $5.7 billion.
