Restaurant business

McDonald’s is exiting its burger restaurant business in Russia

Global burger giant McDonald’s has announced plans to pull out of its restaurant business in Russia, after more than 30 years in the country.

McDonald’s announced earlier today that it would withdraw from the Russian market and began a process to sell its restaurant business. The company temporarily closed its Russian restaurants on March 8.

McDonald’s controls around 850 stores in Russia, 85% of which are believed to be owned directly by the company.

“The humanitarian crisis caused by the war in Ukraine and the precipitating unpredictable operating environment have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable or consistent with McDonald’s values,” he said. the company said in a statement. statement.

As part of McDonald’s decision to pull out, the company is pursuing the sale of its entire portfolio of McDonald’s restaurants in Russia to a local buyer. The company intends to “divest” these restaurants, which means no longer using the McDonald’s name, logo, branding and menu.

McDonald’s will keep its brands in Russia.

McDonald’s said its priorities are to ensure that McDonald’s Russia employees continue to be paid until the close of any transaction and that the employees have future employment with any potential buyer.

President and CEO of McDonald’s Chris Kempczinski said his company is exceptionally proud of the 62,000 Russian employees who work in its restaurants, as well as the hundreds of Russian suppliers who support the company and its local franchisees.

“Their dedication and loyalty to McDonald’s makes today’s announcement extremely difficult. However, we have a commitment to our global community and must remain true to our values. And our commitment to our values ​​means we can no longer make the Arches shine in Russia.

McDonald’s restaurants in Ukraine remain closed as the company continues to pay full salaries to its employees in the country and continues to support local relief efforts led by the Ronald McDonald House Charities.

Across Europe, the McDonald’s system supports Ukrainian refugees through donations of food, housing and jobs.

Following its exit from Russia, the Company expects to record a charge, which is primarily non-cash, of approximately US$1.2-1.4 billion to amortize its net investment in the market and recognize significant currency translation losses previously recorded in equity.

  • Despite the Russian closures, McDonald’s plans to add more than 1,300 new (net) restaurants globally in 2022.
  • McDonald’s is the world’s largest foodservice retailer with 39,000 locations in more than 100 countries. The company is the Australian beef industry’s largest customer in the world.