CHICAGO — Russia’s invasion of Ukraine has led the management of McDonald’s Corp. determine that ownership of their business in the country is no longer tenable or consistent with the values of the business. The company is currently pursuing the sale of its entire restaurant portfolio in the country to a local buyer.
The company intends to initiate the process of “de-escalating” these restaurants, which involves no longer using the McDonald’s name, logo, brand and menu, although the company will continue to retain its brands in Russia. . Management said its priorities include ensuring that McDonald’s Russia employees continue to be paid until any deal closes and that employees have future employment with any potential buyers.
“We have a long history of establishing deep local roots wherever arches shine,” said Chris Kempczinski, President and CEO. “We are exceptionally proud of the 62,000 employees who work in our restaurants, as well as the hundreds of Russian suppliers who support our business and our local franchisees. Their dedication and loyalty to McDonald’s makes today’s announcement extremely challenging.
“However, we have a commitment to our global community and must remain true to our values. And our commitment to our values means that we can no longer make the Arches shine there.
Following its exit from Russia, McDonald’s expects to record a charge, which will be mostly non-cash, of approximately $1.2-1.4 billion to cushion its net investment in the market and recognize significant losses. change.
McDonald’s restaurants in Ukraine remain closed and employees continue to receive their full salaries, according to the company.
The Russian and Ukrainian markets combined accounted for about 2% of McDonald’s system-wide sales in 2021.