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McDonald’s announces full withdrawal from Russia after more than 30 years

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After more than 30 years, McDonald’s announced this Monday, May 16, its definitive withdrawal from Russia in response to the war in Ukraine, after having closed its stores at the beginning of March, for which it will sell all its operations.

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Russiawhere McDonald’s It directly manages more than 80% of its restaurants that bear its name, representing 9% of the company’s total turnover and 3% of its operating profit.

“The humanitarian crisis caused by the war in Ukraine and the precipitous unpredictable operating environment have led McDonald’s to conclude that continued ownership of the business in Russia is no longer sustainable,” CEO Chris Kempczinski said in a statement. of the company.

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As part of the decision, the burger chain intends to sell its entire portfolio of restaurants in Russia to a local buyer, which means ceasing to use the name, logo, brand and menu, although the company will continue to retain its trademarks. in that nation.

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However, the measures include ensuring that the 62,000 employees of McDonald’s Russia’s 850 restaurants continue to be paid and employed in the future.

“We are committed to our global community and must remain uncompromising in our values. Respecting our values ​​means that we can no longer keep McDonald’s in Russia,” Kempczinski said.

As recalled, the firm announced the temporary closure of all its establishments and the suspension of its operations in the country on March 8, following in the footsteps of other multinationals that distanced themselves from Moscow.

However, McDonald’s will have to carry a loss of 1,200 million to 1,400 million dollars. In addition, the company expects the operating margin to be in the 40% range as a result of the Russia charge.

With information from AFP,

Source: Larepublica

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