Status: 05/16/2022 4:19 p.m
The US fast-food restaurant chain McDonald’s is withdrawing completely from Russia, and sales of the branches there have begun. The decision has a significant impact on the group’s balance sheet.
The fast-food chain McDonald’s is completely going out of business in Russia because of the Russian war against Ukraine. After more than 30 years in the country, the US group wants to sell its 850 branches to a Russian buyer, who is also to take over the 62,000 employees. Until the sale is completed, McDonald’s will pay them. The company did not name a potential buyer.
The new owner of the restaurants should no longer be able to use the brand symbols. The company said it was no longer acceptable for McDonald’s to do business in Russia due to the humanitarian crisis resulting from the Russian invasion of Ukraine. This cannot be reconciled with the values of the company.
More than a billion special charges
The company had already announced on March 8 that it would temporarily close the restaurants in the country. According to its own statements, McDonald’s will post special costs of 1.2 to 1.4 billion US dollars for the withdrawal from Russia, including write-downs and foreign currency losses.
The commitment and loyalty of employees and suppliers in Russia made the decision very difficult for the group, said McDonald’s boss Chris Kempczinski. “But we have an obligation to our global community and must uphold our values.”
McDonald’s opened its first fast-food restaurant in Moscow during the Cold War – sending a strong signal that tensions between the US and the Soviet Union had eased. Other large US corporations such as Starbucks, Pepsi and Coca-Cola have already suspended or closed their business in Russia due to Western sanctions.