The American fast food giant had a presence in Russia for more than 30 years and has 850 restaurants on site.
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It’s a strong decision. The American firm, which had already closed its stores in Russia in early March, announced on Monday May 16 that it wanted to withdraw from the country and sell all its activities in response to the Russian invasion of Ukraine.
“We are committed to our global community and must remain adamant about our values”said group CEO Chris Kempczinski, quoted in a company statement. “The humanitarian crisis caused by the war in Ukraine and the resulting unpredictable economic environment led McDonald’s to conclude that the continuation of our activities in Russia was no longer tenable or consistent with our values”he added.
With its withdrawal from Russia, McDonald’s, which has 850 restaurants and 62,000 employees in the country, estimates that the group will record a non-cash charge (not giving rise to any outflow of money) of between 1.2 billion and 1.4 billion. of dollars.
Present in Russia for more than 30 years, McDonald’s directly manages more than 80% of the restaurants bearing its name, which represents 9% of the firm’s total turnover and 3% of its operating profit.
The group has also announced that it wants to resell its entire Russian portfolio to a local player. Until a transaction is finalized, McDonald’s is committed to continuing to pay its employees and wants to ensure that they continue to be hired by the future acquirer.